UK's Card Factory H1 revenue rises, helped by Funky Pigeon acquisition

By Reuters News


Overview

  • UK greeting card retailer's H1 revenue rose 5.3% yr/yr, driven by Funky Pigeon acquisition

  • Adjusted EPS for H1 rose 1.6% yr/yr; adjusted PBT broadly flat as store gains offset investment

  • Company completed 83% of £15 mln share buyback; plans £3 mln buyback for share schemes


Outlook

  • Card Factory expects FY27 Adjusted PBT in line with consensus of £54.0m-£59.0m

  • Company says UK store like-for-like sales have improved and returned to positive growth recently

  • Company highlights strong Golden Quarter plans with new products and targeted value investment


Result Drivers

  • FUNKY PIGEON ACQUISITION - Revenue growth in H1 was driven by the contribution from Funky Pigeon, acquired in August 2025

  • STORE MARGIN IMPROVEMENT - Improved store profitability was delivered through higher product margins and efficiency measures

  • WHOLESALE AND PARTNERSHIPS - Wholesale sales increased 13.6%, supported by partnerships with The Reject Shop, Aldi, and Garlanna


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 260.80 mln

H1 Adjusted EPS

GBP 0.029

H1 Basic EPS

GBP 0.027

H1 EBITDA

GBP 46.20 mln

H1 Operating Cash Flow

GBP 800,000

H1 Pretax Profit

GBP 12.30 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

  • Wall Street's median 12-month price target for Card Factory PLC is GBp101.00, about 38.9% above its September 28 closing price of GBp72.70

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Sept 28 - UK homebuilders rise as government unveils first-time buyer incentive

  • Sept 28 - UK floor coverings distributor Likewise Group H1 revenue and profit rise year on year

  • Sept 28 - UK's Christie Group H1 revenue rises 5.4% on higher business sales


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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