7th Aug 2023 10:07
(Alliance News) - Card Factory PLC on Monday said, given the strength of its performance in the first half of its financial year, it now expects its annual results to be materially ahead of its previous expectations.
"It seems Britons are still very attached to the idea of sending a greetings card to mark special occasions and that's reflected in a very upbeat trading update from Card Factory," commented Russ Mould, investment director at AJ Bell.
In the six months ended July 31, the Wakefield, England-based greeting cards retailer said trading has continued to be strong. It cautioned that the macro backdrop continues to be uncertain, however, with much to be delivered over the rest of the year.
"Nevertheless, given the strength of the performance in the first half, together with our current outlook for the second half, the board now expects the full year outturn to be materially ahead of its' previous expectations," it said.
The company did not specify these expectations, however UBS said it forecasts Card Factory's pretax profit in financial 2024 will total GBP42.4 million. In financial 2023, Card Factory reported a pretax profit of GBP52.4 million.
AJ Bell's Mould noted that Card Factory has been "consistently" raising earnings expectations as of late so it "must be doing something right" in what is a "very tricky" retail environment.
"The company's offering is perfectly pitched for cost conscious consumers – and while some of this market has migrated online there are still plenty of people who want to go into a shop and peruse the cards while picking out extras like birthday balloons and party poppers," he said.
Shares in Card Factory were up 15% at 102.26 pence on Monday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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