Card Factory upholds full-year revenue outlook following sturdy Christmas

Card Factory has overcome broader retail gloom over a disappointing ‘golden quarter’ after posting an impressive festive trading season.

The Wakefield-based retailer saw turnover rise 4.7 per cent in November and December, with store revenue increasing by 3 per cent on a like-for-like basis.

The firm’s sales outperformed the broader non-food retail market over the period as well as the 11 months ending December when revenues grew by 6.2 per cent to £506.6million. 

Card Factory credited the result to expanded ranges of products like confectionery and soft toys driving higher average basket values, as well as purchases of gift and celebration essentials.

Following the performance, Card Factory continues to expect its full-year adjusted profits before tax will be within market estimates of £65.7million to £67million. 

Online like-for-like orders plunged by 10 per cent as the company prioritised higher-margin goods ranges.

However, store revenues expanded by 5.7 per cent thanks to the opening of 32 new outlets and solid demand for cards and gifts.

In addition, partnerships sales jumped by 23.5 per cent to £18.9million on the back of acquiring Irish greeting cards seller Garlanna and entering the United States with the takeover of gifts and celebrations wholesaler Garven.

‘We are pleased to have delivered another successful Christmas trading period,’ said Darcy Willson-Rymer, chief executive of Card Factory.

He added: ‘Continued revenue growth, combined with the benefits of our productivity and efficiency programme, have enabled us to navigate a challenging retail environment and deliver a robust performance.’

Card Factory warned around £14million in extra costs during the 2026 financial year because of recent Budget announcements, including the National Living Wage, which is rising by 6.7 per cent to £12.21 per hour.

At the same time, employers’ national insurance contributions will go up to 15 per cent on staff salaries above £5,000, compared to the current 13.8 per cent levy on wages exceeding £9,100.

Yet Card Factory still anticipates scoring a ‘mid-to-high single-digit’ percentage rise in adjusted pre-tax profits next year.

Russ Mould, investment director at AJ Bell, said the firm’s trading update would ‘calm some nerves around whether cash-strapped consumers would pull back from sending Christmas cards given the high cost of a stamp these days’. 

He added: ‘Card Factory’s cheap prices mean shoppers often walk out with much more than they originally intended to buy, loading up on items as they walk along the aisles.’

Card Factory shares were 3.4 per cent higher at 93.8p on late Tuesday afternoon, although they have still plunged by over a third in the past year.