He said: “We made further progress in the first half towards building a broader, more diversified celebrations business. Despite continued pressure on the UK consumer, group revenue increased and profitability remained broadly flat, with improved store profitability and disciplined working capital management delivering strong free cash flow.”

The business said improved store execution, including its spring sale and range changes, helped increase product margins and store profitability.

The Republic of Ireland was a particular bright spot, with total store sales up 24.3% and like-for-like sales rising 5.6%.

Wholesale sales also increased 13.6%, helped by partnerships with The Reject Shop and Aldi, as well as Garlanna in Ireland.

Digital sales rose by £12.8m following the acquisition of Funky Pigeon, which Card Factory bought in August last year.

The integration of the business is now complete and the group said delivery of expected synergies of £5m from FY28 remained on track.

Card Factory is also stepping up its push into the wider celebrations market, with a new party proposition rolled out from mid-July.

The group said the new range was designed to broaden its role across the £14.9bn UK celebration occasions market.

It is now preparing for the crucial golden quarter, with plans centred on new products, broader cross-category merchandising and a stronger seasonal offer.

Willson-Rymer added: “We remain focused on strengthening our store estate and increasing our share of the celebrations market. During the first half, we continued to optimise our stores and space, strengthened our value proposition and rolled out our new party range.

“In addition, the ongoing development of our partnerships and international businesses are broadening our reach and creating further opportunities for growth, and the integration of Funky Pigeon and delivery of the expected synergies remain on track.”

The group declared an interim dividend of 1.4p per share, up from 1.3p.

Its previously announced £15m share buyback is now 83% complete, with a further £3m buyback planned to meet future obligations under colleague share schemes.

Card Factory said trading since the half year had been encouraging, with UK like-for-like sales improving and returning to positive growth in recent weeks.

Willson-Rymer said: “We are confident of delivering full-year expectations with strong golden quarter plans in place, supported by significant product newness and a further strengthening of our great value offer.”

The group said it remained confident in its full-year adjusted pre-tax profit expectations.

For more information and the source, visit: Card Factory sales soar but profits take a hit | TheBusinessDesk.com