Card Factory says it is on course to meet full-year profit expectations, with sales at its UK stores returning to growth in recent weeks.
Analysts expect adjusted pre-tax profit of between £54.0 million and £59.0 million for the year to January 2027, with an average forecast of £56.7 million.
As usual, most of that profit will be made in the second half, when Christmas trading does the heavy lifting.
The greeting cards retailer says like-for-like sales in UK stores, which strip out new openings and closures, have improved since the half-year end.
Chief executive Darcy Willson-Rymer said the company had "strong Golden Quarter plans in place", referring to the busy run from Halloween through to Christmas.
Those plans include more new products, sharper pricing on key lines and a bigger push on cards, gifts, wrap and party goods together.
Summer footfall slump
The first half was harder going.
Like-for-like store sales fell 2.0% in the six months to 31 July, as weak consumer confidence and a hot summer kept shoppers off the high street.
Footfall near its stores was down about 3.5%, though those who did visit spent around 3.6% more per basket.
Group revenue rose 5.3% to £260.8 million, but that growth came almost entirely from Funky Pigeon, the online card business bought last August.
Adjusted pre-tax profit slipped to £12.7 million from £13.2 million, as better store margins were offset by investment in digital and overseas.
Statutory pre-tax profit jumped to £12.3 million from £7.5 million, helped by currency gains.
Bright spots
Stores in the Republic of Ireland grew sales 24.3%, while wholesale revenue rose 13.6% on the back of partnerships with Aldi and Australia's The Reject Shop.
A new party range, launched in mid-July, has lifted sales in that category by 13%.
The company also generated positive adjusted free cash flow of £0.8 million, a rare feat in a first half when it normally burns cash building stock for Christmas.
Net debt rose to £87.4 million from £78.9 million a year earlier.
The interim dividend rises to 1.4p from 1.3p.
Card Factory's £15 million share buyback is 83% complete, and it plans a further £3 million programme to cover staff share schemes.
