Card Factory's share price slides as profits drop

 
Helen Cahill
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Card Factory said that there are still "high levels of emotional attachment to card purchasing" in the UK (Source: cardfactory.co.uk)

Card Factory's share price was down 2.75 per cent in afternoon trading after the business reported a drop in profit.

The figures

Profit before tax was down 1.1 per cent, from £83.7m to £82.8m, for the year ending 31 January. Revenue was up 4.3 per cent, from £381.6m to £398.2m, and the business said like-for-like sales growth in store was 0.4 per cent.

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This slow growth was partly due to low footfall, a problem "experienced by the general retail market", Card Factory said.

Why it's interesting

Card Factory has been expanding its store portfolio this year, with 51 net new shops by the end of the year, bringing its total to 865. And, there is more to come. The company said today that there is a "strong pipeline of further new store opportunities" for this financial year.

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In terms of the market, Card Factory insisted today that "there has been no meaningful shift in the use of digital greetings as a replacement for the physical card". However, the business has identified that it is not taking full advantage of a trend towards personalised cards, which "remains an attractive niche".

What Card Factory said

Karen Hubbard, Card Factory chief executive, said: "Having joined the group just over a year ago, I have undertaken a detailed strategic review of the business and I am confident that our existing, proven four pillar strategy is the right one to ensure future business growth.

"However, with the benefit of fresh eyes, I believe that within the four pillars there are additional opportunities to further strengthen the business for the longer term, and these will be prioritised in the year ahead."

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