Card Factory (CARD) H2 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in FY2025, with total group revenue up 6.2% to £542.5m and adjusted PBT up 6.3% to £66m, outperforming the wider celebration occasions market.

• Store sales CAGR of 7.3% since FY23, with 32 net new stores opened in FY25, and robust expansion in gifts and celebration essentials.

• Expanded international footprint through acquisitions, including entry into the US market, and new partnerships with major retailers.

• Online platform stabilized, with focus shifting to cardfactory.co.uk after closure of gettingpersonal.co.uk.

• Maintained a market-leading position in the UK celebration occasions market, with a vertically integrated, value-driven business model and progressive shareholder returns.

Financial highlights

• Total group revenue increased by 6.2% year-over-year to £542.5m, driven by 5.8% growth in core store sales and strong partnership business growth.

• Adjusted EPS rose 5.9% to 14.3p; product margin held at 69.7% despite higher freight and wage costs.

• Free cash generation was £29m; net debt increased to £58.9m mainly due to acquisitions, with leverage at 0.7x, well below the 1.5x target.

• Dividend per share for FY2025 increased 6.7% to £0.048, with a coverage ratio of 3.0 and a yield of ~5%.

• CapEx of £18.4m in FY2025 focused on new stores, refits, and digital upgrades.

Outlook and guidance

• Board expects mid to high single-digit % growth in adjusted PBT for FY2026, with profit again weighted to the second half.

• Plans to continue store expansion at similar rates, further optimize store space, and invest in digital and omnichannel capabilities.

• Inflationary headwinds of 4-5% expected in FY2026 (~£20m additional costs), with mitigation through the Simplify and Scale program.

• Free cash generation targeted at 70-80% of earnings, supporting progressive dividends.

• Trading in FY26 to date is in line with management expectations, with continued momentum across key seasonal events.