Card Factory (LSE:CARD), the UK greetings card, gift and celebrations retailer, reported revenue of £260.8m for the six months to 31 July, up 5.3% on the same period last year.
Adjusted pre-tax profit fell to £12.7m from £13.2m, as improved store profitability was offset by investment in digital and international growth.
Free cash flow turned positive at £0.8m, an improvement of £7.1m year-on-year, which the company attributed to disciplined working capital management in a period that has historically produced a cash outflow.
Total store sales fell 0.7%, with like-for-like sales down 2.0% amid weak UK footfall, though Republic of Ireland stores grew total sales 24.3%. Wholesale sales rose 13.6%, helped by partnerships with The Reject Shop, Aldi and Garlanna.
Digital sales rose £12.8m following the Funky Pigeon acquisition completed in August 2025; management said integration is on track to deliver expected synergies of £5m from FY28.
Previously, FY26 results in April showed full-year revenue up 7.4% to £582.7m but Adjusted PBT down 15.2% to £56m, so this half-year shows the profit pressure has eased to a much smaller decline.
"We remain confident of delivering full-year expectations with strong Golden Quarter plans in place," said Darcy Willson-Rymer, chief executive.
The board declared an interim dividend of 1.4p, up from 1.3p a year earlier. The previously announced £15m share buyback is now 83% complete, and the company intends to launch a further £3m buyback to treasury for colleague share schemes.
Management said trading has improved since the half-year, with UK store like-for-likes returning to positive growth in recent weeks, and reiterated confidence in FY27 Adjusted PBT weighted to the second half and Christmas trading.