Card Factory — Challenging UK high street

Card Factory (LSE: CARD)

Last close As at 11/12/2025

GBP0.96

−0.50 (−0.52%)

Market capitalisation

GBP337m

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Research: Consumer

Card Factory — Challenging UK high street

Card Factory’s (CARD’s) trading update highlights that continuing weak consumer confidence has contributed to soft footfall on the high street as it heads into its key trading period. As a result, sales performance in its UK stores was lower than previously expected. Therefore, with the assumption that the same trend continues, management anticipates FY26 adjusted PBT will be £55–60m, some 15–22% below our prior forecast. While the trading update is undoubtedly disappointing, there are a number of positives outside the UK stores. First, the UK sales performance is volume related (ie due to lower footfall), implying average basket values have not been affected. Second, the performances of the other businesses, including Funky Pigeon, are in line with management’s expectations. Finally, the ‘Simplify and Scale’ productivity and efficiency programme is progressing well.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

Retail

FY26 trading update

12 December 2025

Price 75.00p
Market cap £261m

Net debt at 31 July 2025, excluding IFRS 16 liabilities

£(78.9)m

Shares in issue

348.4m
Free float 88.7%
Code CARD
Primary exchange LSE
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs (1.7) (7.2) (1.0)
52-week high/low 113.5p 69.4p

Business description

Card Factory is the UK’s leading specialist retailer of greeting cards, gifts and celebration essentials. Its UK and Ireland customers are served via an extensive store estate and digital channels. Partnerships and franchises provide further access to UK and international customers.

Next events

FY26 trading update

January 2026

Analysts

Russell Pointon
+44 (0)20 3077 5700
Chloe Wong
+44 (0)20 3077 5700

Card Factory is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments and fully diluted.

Year end Revenue (£m) PBT (£m) EPS (p) DPS (p) P/E (x) Yield (%)
1/24 510.9 64.2 13.85 4.50 5.4 6.0
1/25e 542.5 67.8 14.75 4.80 5.1 6.4
1/26e 557.8 57.4 12.26 5.00 6.1 6.7
1/27e 602.2 62.0 13.19 5.20 5.7 6.9

Reducing estimates to the bottom end of guidance

Management’s new guided range for adjusted PBT of £55–60m is £10.7–15.7m below our prior estimate of £70.7m using the company’s definition of adjusted PBT. This differs to our definition as we add back share-based payments. Assuming no incremental operating cost savings beyond our prior forecasts and simplistically grossing up the lower expected profit, we estimate this equates to a revenue shortfall of c £31–45m versus our prior forecast. We have reduced our FY26 estimates to the bottom end of the guided range and carried this reduction through to FY27 and beyond.

Valuation: Deep discount to peers remains

The company’s valuation remains at a significant discount to its peers. The average FY26 P/E multiple for its peers, annualised to CARD’s year-end, is 12.7x versus 6.1x for the company.

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