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

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

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

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

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(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.)