EarningsQ2 2026 Earnings Report
DE:0CT Q2 2026 EPS Results
Actual EPS€0.03
Consensus EPS€0.03
Beat/MissBeat by +<€0.01
One Year Ago EPS€0.03
DE:0CT Q2 2026 Revenue Results
Actual Revenue€307.83M
Expected Revenue€307.83M
Beat/MissMet expectations
YoY Revenue Growth+5.33%
Earnings Announcement Details
QuarterQ2 2026
Date09/29/2026
TimeBefore Open
Conference CallTuesday, September 29, 2026
DE:0CT Upcoming Earnings
Card Factory's next earnings date is estimated for May 4, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management reported resilient revenue growth, strong store and partnership performance, successful acquisition integration to date, robust cash generation, low leverage and unchanged full-year guidance. The main challenges were lower first-half profit and margin, substantial cost inflation, softer footfall, online underperformance and a decline in product margin, but management stated that efficiency plans are in motion to offset inflation and remained confident in delivering its full-year expectations.Company Guidance
Resilient Revenue Growth
Total group revenue increased 5.9%, from GBP 233.8 million to GBP 247.6 million, at the top end of the company's guidance for mid-single-digit percentage growth.
Positive Store Performance and Estate Expansion
The core U.K. and Republic of Ireland stores business delivered 2.9% store-base growth and robust like-for-like sales growth of 1.5%. The group added 30 net new stores in the last 12 months, surpassed 1,100 stores, and had 1,111 stores operating at the time of the presentation. Management remains on track to deliver 25 to 30 net new stores this fiscal year and plans to continue opening 25 to 30 net new stores annually for the foreseeable future.
Higher Average Basket Value and Market Share
Share of gift and celebration essentials increased to 53.4%, while average basket value rose to GBP 4.95 from GBP 4.75 in the first half of the prior year. Management attributed the increase to the evolving product range.
Growth in Greeting Cards and Partnerships
Total greeting card sales grew in the low single-digit percentages. The partnership business more than doubled, supported by double-digit organic growth and contributions from the acquired U.S. and Republic of Ireland businesses. The wholesale strategy delivered 15.7% revenue growth in the first half.
Strong Growth in Celebration Categories
Baby gift sales grew 28% to GBP 1.3 million, tableware grew 23% to GBP 2.5 million, and stationery grew 20% to GBP 3.2 million. Stationery like-for-like sales increased 20% following store-space optimization, while the milestone age range delivered a 7% year-on-year sales increase despite receiving less space.
Successful Product Innovation
The first-half product range had 49% newness across all categories. The company launched an in-house-designed premium card range to broaden its appeal to a more affluent demographic while sustaining a higher average selling price and continuing to offer value.
Funky Pigeon Acquisition Accelerates Digital Strategy
The acquisition of Funky Pigeon was completed on 14 August for GBP 24.1 million, implying an EBITDA multiple below 5 based on annual EBITDA of GBP 5 million. Funky Pigeon adds GBP 32 million of sales and GBP 5 million of EBITDA, provides a quality technology platform and established customer base, and creates what management described as a structurally profitable online business within Card Factory.
Funky Pigeon Synergy Opportunity
Management expects to unlock more than GBP 5 million of annual synergies through manufacturing and fulfillment optimization, technology-platform integration, operations and product-range changes. The synergies are expected to be delivered over the next 12 to 18 months and fully materialize from February 2027, in fiscal year FY '28.
Funky Pigeon Revenue Contribution
For FY '26, 5.5 months of Funky Pigeon trading are expected to increase sales by about 3% versus current guidance. The company's FY '26 profit-before-tax guidance remains unchanged because the additional profit is offset by additional financing, transition and integration costs.
Acquired Businesses Performing to Expectations
The businesses acquired in the U.S. and Republic of Ireland in the second half of the prior year performed in line with expectations and contributed positively. Management said Garven and Garlanna are performing in line with acquisition economics and are enhancing profit-before-tax margin.
Cost Efficiency Delivery
The Simplify and Scale program delivered GBP 9 million of efficiencies in the first half through measures including in-sourcing printing and distribution of store merchandising materials, warehouse and agency-labor optimization, a logistics-partner change and a 9% year-on-year reduction in store hours. Management said the program mitigated almost half of the more than GBP 20 million FY '26 cost-inflation headwind, with plans in place to fully offset the impact through the second half.
Strong Cash Generation and Low Leverage
Underlying free cash generation was GBP 37.9 million over the past 12 months, with free cash flow conversion of 78%, within the target range of 70% to 80%. Capital expenditure of GBP 19.3 million was materially in line with the GBP 20 million to GBP 25 million guidance range. Leverage was 1.0x at the end of July, below the maximum target of 1.5x.
Balance-Sheet Headroom
At period end, the group had GBP 46 million of cash and headroom in its debt facilities, with a GBP 75 million accordion option. The revolving credit facility was subsequently increased from GBP 125 million to GBP 160 million to part-fund the Funky Pigeon acquisition and provide further headroom.
Shareholder Returns
The company declared an interim dividend of 1.3p per share, based on an expected progressive full-year dividend with approximately 3 times cover. It also announced an intended annual share-purchase program of 3 million to 4 million shares, expected to enhance EPS by about 1% every year and begin before the end of the year.
Full-Year Guidance Maintained
Management maintained its FY '26 expectations and expects adjusted profit before tax to grow by a mid- to high-single-digit percentage. The company expects second-half sales growth at a similar rate to the first half, excluding additional Funky Pigeon sales, and expects second-half profit-before-tax margin to increase by more than 10 percentage points, consistent with the prior year.
Peak-Season Readiness
Management said peak-trading plans are in place for Halloween and Christmas. The Christmas range includes more than 80% newness on gifts, 95% newness on celebration essentials and 30% newness on cards, including an expanded premium card range. Stock build was on schedule and replenishment processes had been optimized.
International and Wholesale Progress
The company is rolling out its full-service model with The Reject Shop in Australia and has entered New Zealand through a wholesale distributor arrangement. In North America, an ongoing trial with a leading U.S. retailer demonstrated market demand and enabled the company to establish operational capability to service retailers in the region. In South Africa, management reported good traction on new business and expects to begin shipping to a large retailer early next year.
DE:0CT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed