Despite a rise in sales, Card Factory has reported a notable decrease in profits.
- The company’s pre-tax profit plunged by 43% to £14 million in the first half of the year.
- Increased expenses, particularly from the National Living Wage and freight inflation, have been cited as contributing factors.
- Sales were up by nearly 6% to £234 million, demonstrating positive growth momentum.
- The firm’s future outlook remains stable as it continues to combat inflationary pressures.
Despite experiencing an increase in sales, Card Factory has encountered a significant drop in profits during the first half of the year. The company’s pre-tax profit has fallen by 43%, amounting to £14 million for the six-month period ending on 31 July. This decline is attributed to substantial hikes in costs, primarily due to the National Living Wage and freight inflation. Furthermore, strategic investments have also impacted their financial performance.
The retailer’s sales figures have shown a promising rise of almost 6%, reaching £234 million during the same period. This increase indicates a positive trend in the company’s growth strategy. Online sales have also surged, rising by nearly 9%, while revenue from gifts and celebration essentials has grown by 6%, further reinforcing the retailer’s expansion into new gifting categories.
Looking towards the future, Card Factory maintains its full-year expectations, supported by its strong top-line performance in the first half of the year. The company is actively taking robust measures to alleviate the impact of inflationary pressures. The CEO, Darcy Willson-Rymer, expressed confidence in the firm’s ongoing efforts: “During the period, we continued to see strong performance across our growing store estate, with gifts and celebration essentials now a core driver of revenue growth, building on our strength in greetings cards.”
In summary, Card Factory is navigating through rising operational costs by focusing on sales growth and strategic adjustments to sustain its financial health.
