Trading Statement

Card Factory plc, the UK's leading specialist retailer of greeting cards, gifts and celebration essentials, announces a trading update for the eleven months ended 31 December 2025.

Darcy Willson-Rymer, Chief Executive Officer, commented:

"We are on track to deliver profits in line with our revised guidance announced on 12 December 2025. During the second half of the year and particularly the important Christmas period, trading in our UK stores reflected the challenging consumer backdrop which contributed to soft high street footfall. Across the Group, we are encouraged by the performance of our international businesses and that the integration of Funky Pigeon remains on track.

"While the outlook for the UK high street remains uncertain, we continue to focus on our value-led proposition to help our customers celebrate all life's moments. In addition, we continue to successfully drive efficiencies and manage costs through our 'Simplify and Scale' programme. The Board remains confident in the Group's prospects and continued momentum of our growth strategy.

Christmas Trading Update

Christmas trading was in line with our revised expectations, reflecting the challenging UK consumer backdrop and lower footfall1 across UK shopping destinations. Trading across November and December 2025 saw:

• Total Group revenue growth of +4.3% compared to the same period last year.
• Total stores sales down -0.8%.
• Like-for-Like (LFL) store revenue down -1.2%.

1BRC Footfall Monitor December 2025

YTD Trading Update

Total Group revenue for the eleven months ended 31 December 2025 of £541.6 million was up +7.3% year-on-year, supported by positive contributions from acquired businesses:

• Total store sales increased by +1.1%.
• LFL store sales were flat.

Throughout the year, we have continued to progress our strategic priorities, including expanding the offer in our partnerships business and accelerating our digital strategy through the acquisition of Funky Pigeon. The performances of our acquired businesses, particularly those in North America and the Republic of Ireland, were in line with our expectations and together with Funky Pigeon, contributed to the increase in Group revenue year-on-year. Our ongoing 'Simplify and Scale' programme has largely mitigated persistent cost inflation.

Outlook

We expect to deliver our revised guidance of adjusted Profit Before Tax (excluding one-off and non-trading items) for FY26 of between £55 million and £60 million. The Board anticipates declaring a progressive full-year dividend in line with the Group's capital allocation policy. The previously announced programme to purchase shares to satisfy future employee share schemes, has successfully concluded for FY26, at a total cost of £5 million. The Board remains confident in the long-term prospects of the business.

Our Preliminary results will be announced on 28 April 2026 when a further update on the strategic and operational progress of the business will be provided.