Card Factory experienced a notable decline in profits despite increased sales.
- The company’s pre-tax profit dropped by 43% in the first half of the year.
- Sales revenue increased by nearly 6% to £234 million during the same period.
- Significant cost pressures include the National Living Wage and freight inflation.
- Future expectations remain stable due to strong sales performance and strategic measures.
Card Factory reported a significant decline in profits, with pre-tax earnings falling by 43% to £14 million for the six-month period ending on 31 July 2024, despite an increase in sales revenue. This substantial reduction in profit is attributed to elevated costs, particularly due to the National Living Wage and freight inflation, alongside strategic investments that the company has phased in.
Sales, however, demonstrated a robust performance with an increase of almost 6%, reaching a total of £234 million. This growth is indicative of the company’s strategic initiatives gaining traction.
The online sales segment showed an impressive growth of nearly 9% as the business expanded into new gifting categories. Moreover, revenues from gifts and celebration essentials rose by 6%, underscoring their growing significance in the company’s revenue stream.
CEO Darcy Willson-Rymer highlighted the continued strong performance of their expanding store network, emphasizing that gifts and celebration essentials have become central to their revenue growth strategy. Willson-Rymer stated, ‘Together with the exciting partnership initiatives we are announcing today, we are helping more customers in more places celebrate life’s moments.’
Looking forward, Card Factory maintains an optimistic outlook for the full year. The company cites a strong top-line performance in the first half and robust measures to manage inflationary pressures as key reasons for its unchanged full-year expectations.
Card Factory’s strategic initiatives and cost management efforts aim to stabilise future financial performance despite recent profit challenges.
