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Card Factory shares dive as profits fall


Shares in Card Factory have dived 10% after higher costs cut into the retailer’s half-year profits.The FTSE 250 firm reported a 14% drop in profits to £23.2m, blaming currency moves, higher wage costs and investment in the business for the fall.The weaker pound has affected the retailer, as about half the goods it buys are priced in dollars.Card Factory added that its full-year profit would reflect the “headwinds” felt in the first half of the year.Sarah Johns, retail analyst at GlobalData, said the greetings card retailer needed to focus on its online business.”The retailer is right to continue its aggressive expansion; however, with high street footfall declining and online the fastest growing channel in the UK greetings card market over the next five years, Card Factory must invest in its multichannel offer,” she said.”The retailer continued to grow sales via online during the period, but has some way to go in becoming an established player in the online personalisation card category, with Moonpig.com and WH Smith-owned funkypigeon.com key threats.”On the wider market, the FTSE 100 was down 10.2 points at 7,291 points. Advertising giant WPP and software firm Sage Group were the two biggest fallers on the index.The pound rose 0.1% against the dollar to $1.3479 and was 0.4% higher against the euro at 1.1408 euros.Oil prices were holding new two-year highs, with Brent crude up 1% at $59.03 a barrel, having touched $59.49 earlier.
Source: BBC