US EditionCard Factory Cuts Profit Forecast on Weak UK Store Sales
Card Factory cut its adjusted pre-tax profit forecast to £55–60 million due to weak UK high street sales and reduced consumer spending during the festive period.
- On Friday, Card Factory warned that UK store sales are lower than expected into the remaining festive weeks and expects adjusted pre-tax profit of between £55 million and £60 million unless trading improves.
- In recent months, weak consumer sentiment hit spending and shopping, producing soft high street footfall while official figures show the UK economy shrank in the three months to October.
- Previously the group had expected roughly 70 million, but Card Factory now forecasts a 9% to 16.6% lower profit, with Funky Pigeon performing on track.
- Investors reacted as shares of Card Factory dropped nearly 27% to a three-year low, while the board said the share buyback programme will continue and a progressive dividend is anticipated.
- Despite the downgrade, the Card Factory board says the long-term strategy including the productivity and efficiency programme to offset ongoing high inflation is progressing, while shares had lifted since April amid resilient trading.
14 Articles
14 Articles
Card Factory cuts profit forecast on weak UK store sales
British greeting cards and gifts retailer Card Factory has today warned of a drop in annual profit as it expects lower store sales in the UK high street to persist over the remaining festive weeks this year, sending its shares 27% lower.
Shares In Card Factory Plummet After It Lowers Profit Guidance
Shares in Card Factory fell by nearly 25% this morning after it downgraded its annual profit guidance due to weaker consumer confidence and softer footfall. In a trading update, the greeting cards and gift retailer pointed to the pressures facing (more…) The post Shares In Card Factory Plummet After It Lowers Profit Guidance appeared first on KamCity.
Card Factory’s profits slump as fewer shoppers send Christmas cards, says GlobalData
Retail Times publishes international & UK retail news covering products, data, tech, packaging, people, research, comment and more besides! Reacting to the news that card factory issued a major profit warning that saw its shares drop 22% in early trading; Zoë Mills, lead retail analyst at GlobalData, offers her view: “Despite its value focus, Card Factory operates in a discretionary market, and UK consumers are deprioritising cards amid a challe…
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