Card Factory Profits Plunge 43% Amid Rising Costs and Wage Hikes

Despite increased sales, the retailer faces significant cost pressures from higher wages and international shipping expenses.

Card Factory reported a 43% drop in pre-tax profits to £14 million for the six months ending July 31.
The company's wage bill surged by £64.4 million, representing 28% of total sales, due to a nearly 10% increase in the National Living Wage.
Additional cost pressures came from higher international shipping and packaging expenses.
Despite the profit decline, Card Factory's sales increased by 3.7% across its stores, and the company remains on track to meet full-year profit expectations.
The crucial Christmas trading period is expected to play a significant role in offsetting the cost challenges faced by the retailer.