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2025-12-12 19:06:25
[Christmas Can't Save Us? UK Retail Alarms Sounded as Holiday Spending Faces a "Cold Wave"] ⑴ British retailer Card Factory issued a profit warning on Friday, expecting its adjusted pre-tax profit for the current fiscal year to fall by 9% to 16.6%, to between £55 million and £60 million, due to weak sales performance that has persisted into the crucial holiday shopping season. ⑵ The company operates over 1,000 stores in the UK and Ireland, selling soft toys, gifts, Christmas cards, and decorations. It stated that weak consumer sentiment in recent months has impacted shopping behavior and damaged foot traffic on high streets. ⑶ This "shocking" warning caused its share price to plummet 27%, hitting a more than three-year low. Analysts say this raises questions about whether the company's shift towards festive products will make it more vulnerable to economic cycles. ⑷ Its warning echoes official data, which showed on Friday that the UK economy unexpectedly contracted in the three months to October, with retail sales performing particularly poorly in October. (5) In contrast, its online gift retail rival Moonpig reported strong half-year revenue growth on Wednesday, saying the second half had gotten off to a good start, including Black Friday. (6) Despite surveys predicting a possible rebound in holiday spending after a slow start, Card Factory's warning undoubtedly serves as a wake-up call for the UK retail sector and the overall health of consumers, putting market confidence to the test.
