Card Factory held back by troubles on high street

Card Factory has seen its profits dip as sales were held back by the tough conditions on the high street.

The cut-price greeting cards chain posted an 8.3 per cent decline in profit before tax to £66.6 million for the year to the end of January. Like-for-like sales were flat, impacted by sluggish footfall on the high street. The total dividend was held at 9.3p.

However, overall revenue lifted 3.3 per cent to £436m as the retailer continued to roll out new sites. Its store estate currently numbers 972 and it is working towards a target of 1,200 stores in the UK and Ireland.

Chief executive Karen Hubbard reiterated that earnings in the current financial year were likely to be flat compared with 2018 due to continuing cost pressures.

Updating on current trading, she told investors: “Whilst the new financial year is just two months old, we are satisfied with the start we have made and are particularly pleased with record seasonal performances from Valentine’s Day and Mother’s Day.”