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.

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

• Maintained a robust balance sheet, strong cash generation, and progressive dividend policy, supporting ongoing investment and shareholder returns.

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

Financial highlights

• Total group revenue increased by 6.2% year-over-year to £542.5m; store-based sales grew 5.8%, with like-for-like growth of 3.4%.

• Adjusted profit before tax rose 6.3% to £66m; adjusted EPS up 5.9% to 14.3p.

• Product margin held at 69.7% despite higher freight and wage costs; PBT margin flat at 12.2%.

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

• Final dividend of £0.036 per share, total FY2025 dividend £0.048, up 6.7% year-over-year.

Outlook and guidance

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

• Plans to continue store expansion at similar rates, further optimize store space, and drive omnichannel and partnership growth.

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

• Targeting mid-single-digit % sales growth and 70-80% free cash generation of earnings beyond FY2026.

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