Card Factory (CARD) H1 2027 earnings summary

Executive summary

• Group revenue grew 5.3% year-over-year to £260.8m, driven by the Funky Pigeon acquisition, digital, and wholesale growth.

• Adjusted EPS rose 1.6% to 2.9p; adjusted PBT was £12.7m, down from £13.2m, reflecting planned digital investment and store margin gains.

• Store profitability improved despite lower UK footfall and challenging consumer sentiment, supported by higher product margins and cost discipline.

• Strategic initiatives included new party propositions, store segmentation, and operational improvements, underpinning confidence in full-year expectations.

• Free cash flow over 12 months was £47.8m, up £9.9m year-over-year; interim dividend increased 7.7% to 1.4p per share; share buyback program 83% complete.

Financial highlights

• Group sales reached £260.8m, up £13.2m (5.3%); digital sales rose £12.8m, mainly from Funky Pigeon, with digital sales up 398% year-over-year.

• Store sales declined £1.8m to £226m; UK like-for-like sales down 2.3%, offset by new stores and strong Ireland performance (+5.6% LFL).

• Store EBITDA increased 5.7% to £50.4m over 12 months.

• Capital expenditure was £11.8m, focused on manufacturing, digital integration, and HR systems.

• Net debt rose to £87.4m, mainly due to Funky Pigeon acquisition and shareholder returns; adjusted leverage at 1.1x.

Outlook and guidance

• Confident in delivering full-year expectations, supported by new product ranges, value initiatives, and operational improvements.

• FY27 Adjusted PBT expected between £54.0m and £59.0m, with performance weighted to H2 and Christmas.

• FY 2027 free cash flow expected to exceed £30m, with capital expenditure returning to £20m–£25m range next year.

• Targeting mid-single digit group revenue growth and mid to high single digit adjusted PBT growth over the medium term.

• No reliance on sharp footfall recovery; plans built on basket value and operational execution.