Card Factory FY pre-tax profits seen at top end of consensus

Greeting cards retailer Card Factory said on Tuesday that full-year adjusted pre-tax profits were expected to be at the top of market expectations as a result of "positive momentum" across the business.

Card Factory said total sales for the eleven months ended 31 December were £476.9m, up 10.2% year-on-year, store revenue grew 8.2% on a like-for-like basis, while online LFL sales, on the other hand, were down 12.8% year-on-year.

The London-listed group said it had delivered a "continued positive performance" in its everyday and seasonal card ranges, with 5.4% LFL growth in the period, supplemented by strong growth in its gifts and celebration essentials ranges of 9.9% LFL.

Card Factory said it had also experienced "strong Christmas trading", with LFL store revenue up 7.8% in November and December - driven by an increased number of transactions and higher average basket values.

Looking ahead, Card Factory stated that given the strength of its performance in the year to date, it now expects to deliver full-year adjusted pre-tax profits "at the top of the range of market expectations" and said it "remains confident" in the achievement of its long-term financial and operational targets.

As of 0900 GMT, Card Factory shares were down 7.70% at 99.50p.

Reporting by Iain Gilbert at Sharecast.com