Card Factory (CARD) H1 2026 earnings summary

Executive summary

• Revenue grew 5.9% year-over-year to £247.6m in H1/HY26, driven by core store performance, new store openings, and effective strategy execution despite challenging retail conditions.

• Strategic acquisitions, including Funky Pigeon, Garven, and Garlanna, contributed to growth and accelerated digital strategy.

• Store estate expanded to 1,111 locations, with 30 net new stores opened in the last 12 months.

• Interim dividend increased to 1.3p per share, reflecting confidence in sustainable returns.

• Announced share purchase program (3-4 million shares annually) to mitigate dilution and enhance EPS.

Financial highlights

• Group revenue rose to £247.6m from £233.8m (+5.9% year-over-year); store-based sales grew 2.9% with 1.5% LFL growth.

• Adjusted PBT for H1/HY26 was £13.2m, down from £14.5m, impacted by inflation and investment; margin at 5.3% (vs. 6.2%).

• Free cash flow conversion remained strong at 78%, with underlying free cash generation of £37.9m over 12 months.

• Net debt increased to £78.9m, reflecting M&A activity and capital investment.

• Capital expenditure for H1 was £7.6m, mainly for store and system upgrades.

Outlook and guidance

• Full-year expectations remain unchanged, with Adjusted PBT growth targeted at mid- to high single-digit percentages.

• H2 expected to deliver higher PBT margin, benefiting from operational leverage, sales growth, and cost efficiencies.

• Funky Pigeon acquisition expected to add c3% to sales in FY26, with no change to PBT guidance due to offsetting costs.

• CapEx guidance maintained at £20-25m annually.

• Store opening target of 25-30 net new stores per year reaffirmed.