Card Factory Share Discussion Threads

[actscap] 26/9/2024 22:51

Worth just recapping on Darcy's track recordNo equity raise No equity raise following COVID aftermath when most would have caved. Culture change Progressing a successful culture turnaround at CARD. E.g. voted one of top big companies to work for. Data drivenHis tenure at cost cutter saw data driven transformation leading to 20% sales increase. Interested to see how this plays out with the 'good, better, best' price levers and operational stock management etc. at CARD. Customer ledHe's shifted CARD from being product led to customer led. E.g. better customer experience (improved tidy stores, click and collect, improved product mix, etc.). Partnership successNotable progress in partnerships, particularly Aldi and forthcoming US opportunity. Relatedhttps://www.pgbuzz.net/card-factorys-ceo-darcy-willson-rymer-makes-top-100/#:~:text=Card%20Factory's%20ceo%20Darcy%20Willson%2DRymer%20makes%20top%20100%20%7C%20PG%20Buzzhttps://www.yorkshirepost.co.uk/business/card-factory-appoints-costcutter-supremo-as-its-new-ceo-3074601

[clem h fandango] 26/9/2024 17:57

Yes, amazing how sentiment can change. It was worth 1.60 to 2 quid at the start of the week, we have a badly received but essentially in line statement and now it is worth sub a quid!Investors so fickle, no wonder people lose so much money. But I can't talk, now underwater by holding!

[lovewinshatelosses] 26/9/2024 17:42

Should get a technical bounce soon though. Not to mention a 5% dividend in a month, which will attract some new investors and traders shortly, IMO.
The BOD's should have put their hands in their pockets and bought a few by now though. Not like they get paid in cards and balloons :) GLA.

[everton448] 26/9/2024 16:55

Yep - could go lower given that when earnings were 14 pence it traded at 89 and now the market is not convinced that 14 pence will be achieved. I hold but the market sees to have lost all confidence.

[lovewinshatelosses] 26/9/2024 16:53

To be fair, it was kind of relevant to this name, as well as the wider macro stuff :)

[tradertrev] 26/9/2024 16:41

Could we get back to Card Factory please?

[grahamytrain] 26/9/2024 14:04

Working tax credits are being phased out now and being absorbed into Universal Credit. You missed out those vital public sector workers Civil Servants, who incidentally run the company, albeit from home…..and yes those dinosaur baby boomers, who did such out of date things like saving for things they couldn’t afford now, yes they have benefited from the several past property booms, but again a less responsible generation would have remortgaged several times and spent their collateral only to then have their properties repossessed by the banks. This generation want it all now whatever the cost and that’s why personal debt is way out of control yet again, just as per the financial crisis back in 2008.

[lovewinshatelosses] 26/9/2024 13:32

I agree. So, get rid of working tax credits, cut the public sector headcount down to what it only ever should have been in the first place (namely front line doctors, nurses, teachers, police officers, firemen and bin men etc and a small amount of managers and administrators to oversee these operations and services) - and let the market decide on wage levels in the private sector, as has been the case for most of history.
Or we can continue on the current path and see the whole thing collapse anyway.
There is no path that avoids some pretty significant pain in the short to medium term. Not this deep into the quagmire.
But the radical roll back is the least worst option and is also the best option, for the future health and prosperity of our civilisation.
But do not worry, I have little doubt that the current path is how things will continue to play out. Throwing the current young, and yet to be born, British people under the bus, in order to continue the various ponzi schemes that only benefit those smart enough to have been born many years ago.

[farrugia] 26/9/2024 13:16

There’s no good reason why low paying businesses should be subsidies by taxpayers - low margin businesses won't exist then and that would lead to more unemployment.

[lovewinshatelosses] 26/9/2024 13:02

That is all well and good to say, but if government spending had not been so irresponsible for decades, then we would not have such an ominous debt pile to service, from an ever shrinking private sector (the one that actually pays the bills), compounded by an ever more bloated public sector.
Most of which provides little to no value to society, while acting almost exclusively as a net cost.
Regulations on business, which increase almost every year, also cost those enterprises money. As does weak law and order. Theft (or shrinkage, as seems to be the preferred term these days) is another notable burden, especially for retailers.
Sooner or later, the combination of these factors, if left unaddressed, will mean that very few businesses will be able to survive. Which will be terrible for the consumer and even worse for the employees of today and tomorrow.
I agree with you about not bailing out poorly managed outfits. I was one of very few people that I knew at the time who would not have bailed out the banks during the GFC.
But I think you fail to look at, or perhaps understand, some of the important nuances of economics and capitalism (when allowed to exist freely).
That is not a swipe at you, to be clear. But it is a common misunderstanding that is all too prevalent among the current political classes IMO.

[napoleon 14th] 26/9/2024 12:50

IMHO CARD should go up to 69p/card min.
A pitch of "Last week @ 69p", followed by 79p.

IMHO they need to ensure profits to engage in further plans.
Selling prices in shops so low that a few margin increases
would'nt harm CARD's sales.
It would do a lot for profits, tho'.

[car1pet] 26/9/2024 12:09

I agree with Greyingsurfer. A business should have a business plan in which the workforce is paid fairly and it needs to manage the business accordingly. If it can't make a profit then it shouldn't exist. Taxpayers should not bail out poorly managed businesses. I'm sure CARD can increase the price of its cards to pay fair wages and make a profit for investors. My wife buys all her cards from Card factory and would still buy if prices went up by 5%

[greyingsurfer] 26/9/2024 11:46

Our economy suffers from far too many being paid at rates below what they can live on, so their wages have to be supplemented by in work benefits, which have to be paid for by taxpayers. There's no good reason why low paying businesses should be subsidies by taxpayers

[farrugia] 26/9/2024 09:37

lol at increasing salaries again - that's a surefire way to putting UK businesses in the dustbin.

[monte1] 26/9/2024 09:25

First half 2025 earnings released: EPS: UK£0.03 (vs UK£0.056 in 1H 2024)
First half 2025 results:
EPS: UK£0.03 (down from UK£0.056 in 1H 2024).
Revenue: UK£233.8m (up 5.9% from 1H 2024).
Net income: UK£10.5m (down 45% from 1H 2024).
Profit margin: 4.5% (down from 8.7% in 1H 2024). The decrease in margin was driven by higher expenses.
Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Specialty Retail industry in the United Kingdom.

Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth.

[fozzyb] 26/9/2024 09:23

It may drift slower now awaiting labour budget end of month. Minimum wage sat at £11.44 but there is a wide range of forecasts for what it may be up to £12.39 with consensus at £11.89 but it depends what source you read. Given the HY results this is now a key focus I would say.

[johndoe23] 26/9/2024 09:17

90-100 reenter target

[rnbf] 26/9/2024 08:59

Based on current numbers I am not sure that it is too cheap at 110p. We know that retail staff costs ( same in hospitality industry) have a huge impact on net margins . Labour will add to the staffing costs and possibly business rates as well. In current environment I see a floor price for this stock at around 90p.Half year results probably only show the rosy side of the problems ahead . Good news I will continue to shop at CF

[haroldthegreat] 26/9/2024 08:59

I pass a Card Factory shop whenever I leave my house and I also retail cards . Their shops are bright ,clean and tidy . I feel they make a marketing mistake in putting their name on their cheapest cards . They have been doing more cut price deals this year like 3 plus one free across the board as opposed to just on specific sections and for longer . Everyone knows they sell cheap cards but does one really want to send someone a card that says on the back I am a cheapskate and purchased you a cheap.card at Card Factory? For childrens cards it does not matter . They should use another brand name on their cheapest cards .These more generous offers must have helped reductions in their profit margins .

[rnbf] 26/9/2024 08:20

I sold yesterday at 111p it was against my better judgement. I bought CF because I like the shop and know that much of the competition have folded ( that's a minor warning as well). The performance shock (contrary to trend) this crazy new menacing government and a 12% profit was my justification for a sell. It may bounce back at Xmas but in a Consumer semi staples sector Sales are not the answer.

[rnbf] 26/9/2024 08:08

A lot of people rush to buy a card last minute so price is not the key issue here. It's about a good well presented selection with everything in one shop.Getting the offering is really important here with balloons, wrapping paper and just maybe some expensive higher margin items like : Big Cards Voucher entertainment gifts Gas Balloons It's about having the shop in the right location with little competition.You need staff for security as well as promoting sales.

[melody9999] 25/9/2024 19:11

Elasticity of demand comes to mind. I am sure our BOD have a good handle on the impact on demand of increasing prices across the board by x %. A low lead in price is a great strategy. Also good is getting the consumer into the shop for a 59p card .... and then selling themn a £5 gift with larger margin.

It is easy for us to say 'just raise prices' But IMV it is the entirety of the product offering and how CARD finesse pricing across the range that leads to optimal margins and hence maximum profits.

Also ..... as investors, I think we have to have confidence in our executives - they run the business. If you find you don't agree with their strategy, be it pricing or whatever, then you will not have the conviction to keep holding...so best to sell at that point and move on . (but maybe not at this price cos its too cheap IMV!)

[bountyhunter] 25/9/2024 18:34

Yes 59p is too cheap for a single card imho. 99p would be fine and virtually no-one would go out empty handed because of that since as has been said where else are they going to go!?
If I pick up a card I like in Card Factory and it's only 59p I don't think 'great that's what I was looking for' I think 'blimey I've hit the jackpot!' :-)