Card Factory Shares Exceede Performance Expectations

May 1, 2024

Card Factory, a personalised gift and party supply business, saw its shares rise by eight per cent in early trading as the company resumed its dividend payout and announced an increase in revenue. For the fiscal year ending in January, the publicly listed company reported a 25 per cent rise in profit before tax, reaching £65 million.

The company, headquartered in Wakefield, experienced growth fueled by the opening of 26 new stores, expanding its total footprint to over 1000 stores across the UK and Ireland. Card Factory aims to continue this momentum with a similar number of store openings planned for the current year.

Additionally, Card Factory introduced a new click and collect feature, expecting around 7.8 percent of all online orders to be collected in-store as it strengthens its omnichannel strategy.

Darcy Willson-Rymer, the CEO of Card Factory, expressed his satisfaction with the progress made, attributing it to the dedication and hard work of the company’s employees. He emphasized the significant strides made over the past three years under the ‘Opening our New Future Strategy’, positioning Card Factory as a financially and operationally robust business.

Willson-Rymer underscored the company’s ability to reinstate dividends and invest in future growth while navigating the challenging economic landscape. He reiterated confidence in Card Factory’s value and quality customer proposition, affirming alignment with financial targets for the current fiscal year and the FY27 objectives outlined during the Capital Markets Day in May of the previous year.

Peel Hunt analysts maintained a ‘Hold’ rating for the company, acknowledging its solid financial performance over the year. However, they noted the challenging situation faced by Card Factory, suggesting that while the company is managing well under current conditions, the trajectory of profit growth may keep the shares range-bound in the near term.