Proactive Investors - Run By Investors For Investors

Card Factory hit by weather and wary consumers

Liberum reduced its price target to 195p from 210p after the cards and gifts retailer lowered its profits expectations
greeting cards
Christmas will be more important than usual

Card Factory PLC (LON:CARD) was hit by a price target reduction from its house broker after a downbeat trading update.

Liberum reduced its price target to 195p from 210p after the cards and gifts retailer lowered its profits expectations for the year ending January to between £89-91mln.

READ: UBS posts an upgrade for Card Factory as it turns positive on growth prospects

Karen Hubbard, chief executive, said the company was facing a weak consumer environment, made worse by the extreme weather conditions. 

"The performance of our seasonal ranges has been strong, with our best ever Father's Day in terms of volume and value, although we recognise there has to be more focus on our Everyday ranges, which have lagged the seasonal performance.”

Getting Personal also struggled with sales down by 8.5% in the half year to July.

Total group sales grew by 3.2%, but dipped 0.2% on a like-for-like basis.

Christmas trading will be even more critical than usual, Hubbard said, though the retailer still intends to pay a special dividend of between 5-10p.

Peel Hunt added that the wider/improved ranges at the superstores and the discounters appear to be taking a toll.

"The new designs and improved store navigability are not resonating with customers it would seem," added the broker.

Shares fell 9% to 192.6p.

View full CARD profile View Profile

Card Factory Timeline

Related Articles

plastic pollution
April 17 2018
“This technology is available. It works. It is not expensive and does not interrupt the supply chain,” said Bob Wigley, a non-executive director of Symphony.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use