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Card Factory has reported a 31.5% decline in annual profits to £43.9m for the year ended 31 January 2026, as softer high street footfall during the second half of the year offset revenue gains.
This represents a 31.5% decrease from the £64.1m achieved in the previous year as low consumer confidence impacted peak Christmas trading.
However, total group revenue rose by 7.4% to £582.7m. Performance across categories was mixed, with card sales declining 0.9% and gifting down 1.9%, while celebration essentials grew by 1.7% on a like-for-like basis.
The group expanded its physical footprint by opening 27 net new stores, bringing its total estate to 1,117 sites. Wholesale partnership revenue more than doubled to £47.2m, supported by the acquisition of Garven and Garlanna.
Digital sales reached £20.6m, including a £13.5m contribution from Funky Pigeon. The acquisition has established Card Factory as the second largest online card and gift retailer in the UK.
For the 2027 financial year, the board expects adjusted profits to meet market consensus. Growth is expected to be driven by a full-year contribution from Funky Pigeon and further store openings in underpenetrated markets.
Trading in the first three months of the new financial year remained stable, with sales in line with the previous year.
The group remains focused on its efficiency programme to offset wage growth and general inflation.
The company noted potential risks from geopolitical instability in the Middle East, which may impact container rates and fuel surcharges. However, the retailer has hedged 100% of its foreign currency requirements for the year.
Darcy Willson-Rymer, chief executive, said: “Despite a challenging consumer backdrop in FY26, we continued to execute our strategy to transform Card Factory into a global celebrations group, underpinned by targeted investment and disciplined cost management.
“The board remains confident in cardfactory’s ability to deliver mid-to-high single digit percentage Adjusted PBT growth per annum, over the medium term.”
