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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
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Proactive UK has moved.
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Fashion & brands

Card Factory updates on consumer behaviour the focus in expectation-beating interims

Card Factory has already said its interims will be better than expected

Card Factory (LSE:CARD)’s 26 September interim results have already been hyped to come in “materially ahead” of expectations.

Tuesday's update should just provide specifics on what has already been tipped as a strong start to the year, with analysts pointing to like-for-like growth as a key metric.

According to UBS, any updates on consumer behaviour and international partnerships will also be keenly watched.

“We believe the strong top line reported in the first half was driven by Card Factory (LSE:CARD)'s core business, as it took on market share in a difficult macro backdrop,” the bank said.

This was following Card Factory (LSE:CARD)’s own announcement in August that the results would be far ahead of what was previously expected.

UBS anticipated full-year pre-tax profit would come in at £59 million, which would be up 12.6% on last year.

Performance will likely be heavily weighted toward the second half though, the bank noted, with pre-tax profit coming in at £14.3 million in last year’s interims.

Revenue sat at £198 million at the half-year stage last year meanwhile, after a return of customers to high streets following the pandemic drove in-store sales.

Card Factory (LSE:CARD) still operates in a “stagnating market” however, UBS added, with the better-than-expected results already likely priced into the retailer’s shares.

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