Overview
UK greeting cards retailer's preliminary FY26 revenue rose 7.4%, beating analyst expectations
Adjusted EPS for FY26 met analyst expectations
Company to launch £15 mln share buyback, citing strong free cash flow
Outlook
Card Factory expects FY27 Adjusted PBT in line with market consensus, averaging £58.2 mln
Company anticipates year-on-year sales growth in FY27, including full-year benefit from Funky Pigeon
Company expects profit margins in FY27 to remain broadly consistent with FY26, with profit delivery weighted to H2
Result Drivers
LOW FOOTFALL - Co said lower UK high street footfall and weaker consumer confidence, especially in H2, reduced store transactions and impacted profitability
ACQUISITIONS - Revenue growth was supported by acquired businesses, including Funky Pigeon and wholesale partnerships, per CEO and CFO
COST MANAGEMENT - Simplify & Scale programme mitigated cost inflation and supported free cash flow, according to management
Company press release: ID:nRSb1132Ca
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 582.70 mln
GBP 571.54 mln (8 Analysts)
FY Adjusted EPS
Meet
GBP 0.12
GBP 0.12 (8 Analysts)
FY Basic EPS
GBP 0.09
FY EBITDA
GBP 116.80 mln
FY Operating Cash Flow
GBP 40.70 mln
FY Pretax Profit
GBP 43.90 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Card Factory PLC is GBp110.00, about 65.9% above its April 27 closing price of GBp66.30
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)