Card Factory shares tumbled as much as 12% following the release of its full-year earnings report, as analysts flagged lingering questions over the company’s digital direction and US growth plans. Despite headline growth, the lack of detail on key strategic initiatives has left investors wary about the retailer’s long-term trajectory.
The company posted a 6.2% rise in revenue to £542.5 million for the year ended January 2025, with like-for-like store sales up 3.4% and partnerships revenue jumping 30.6%. However, online sales growth was flat and the closure of the personalised gift website GettingPersonal.co.uk-down 25.4% year-on-year-cast a shadow over Card Factory’s digital ambitions.
Analysts noted that the absence of a clear digital strategy could deter some investors, especially at a time when omnichannel retail is becoming increasingly important in the sector.
Panmure Liberum analyst Wayne Brown highlighted the lack of commentary on Card Factory’s US partnerships and rollout, calling it “baffling” given management’s previous statements about the US market’s strategic importance.
While Card Factory’s CEO has described the US as “key to achieving its strategy” and announced a wholesale partnership covering 49 states, the latest results failed to provide updates or clarity on progress in this crucial market.
Further scrutiny came as the 6% revenue growth appeared softer than the sum of its parts would suggest. While new stores, partnerships, acquisitions, and expanded gifting ranges all outperformed, analysts suspect underlying volumes, footfall, and transaction numbers may have declined.
This disconnect raises concerns about the sustainability of growth, particularly if store expansion and category additions are masking weaker core demand.
On the digital front, Card Factory’s current online and click-and-collect offerings remain basic, with management outlining plans for future enhancements such as balloon collection, assisted in-store selling, and a loyalty program.
The company is targeting 7% of sales from combined omnichannel and online channels by 2026, aiming to become the UK’s first card and gifting retailer to fully embrace an omnichannel model. However, the slow pace of digital transformation and the closure of GettingPersonal.co.uk have left the market unconvinced.
In summary, while Card Factory delivered solid financial results and continues to outperform the broader celebrations market, the lack of clarity on digital strategy and US expansion weighed heavily on sentiment. Investors and analysts will be looking for more decisive action and communication from management as the company navigates a rapidly evolving retail landscape.