Profits warning hits shares in Card Factory

SHARES in Card Factory collapsed after the retailer said profits will come in lower as it faces a margin squeeze.

The company warned that annual earnings will be in the range of £93m-£95m, down from last year’s £98.5m because of “continued margin pressure”.

Card Factory, which specialises in greeting cards, dressings and gifts, also predicted that in 2019 it will be clobbered by the weak pound and wage inflation, which will see it book an extra £7m-£8m in costs.

Shares fell over 20% in morning trading to 222p.

The announcement came alongside a trading update covering the 11 months to December 31, in which Card Factory’s total sales grew 5.9% and 2.7% on a like-forlike basis.