Card Factory (CARD) H1 2025 earnings summary

Executive summary

• Revenue grew 5.9% year-over-year to £233.8m for HY25, driven by strong store and online performance, new partnerships, and international expansion.

• Like-for-like store revenue increased 3.7%, outpacing the broader market, with 15 net new stores and gifts and celebration essentials now 52.6% of total sales.

• Strategic progress included entry into the US market, expanded Aldi partnership, and acquisition of Garlanna in Ireland.

• Interim dividend of 1.2p per share declared, reinstated after five years, with full-year expectations unchanged.

• Resilient performance despite inflationary and wage pressures, with positive cash generation and margin recovery actions underway.

Financial highlights

• Revenue: £233.8m (+5.9% vs HY24); store-based sales up 6.1%; like-for-like sales up 3.7%.

• Adjusted PBT: £14.5m (down 34.4%); EBITDA: £45.3m (down 11.4%); PBT: £14.0m (down 43.3%).

• Adjusted EPS: 3.1p (down 1.9p); basic EPS: 3.0p; interim dividend of 1.2p declared.

• Gross margin fell to 32.6% (HY24: 36.8%) due to wage and freight inflation; product margins flat at 70.1%.

• Net debt (excl. leases) at £74.9m, mainly due to £15.5m dividend payment; operating cash conversion dropped to 38.6%.

Outlook and guidance

• Full-year expectations remain unchanged, with H2 expected to benefit from efficiency, productivity, and margin improvement actions.

• Board confident in delivering FY25 and FY27 targets, including £650m revenue and 14% PBT margin.

• H2 trading to date is in line with H1; Christmas trading period is critical for full-year performance.

• Margin growth in H2 expected from seasonality, productivity, efficiency savings, and range development.

• Macro-inflationary pressures are easing, but retail-specific impacts remain.