Shares in Card Factory rose more than five per cent after the retailer reported festive growth ahead of the wider market.

Revenue rose 4.7 per cent in November and December, driven by a higher average spend on sweets and toys.

Total sales for the 1 months ended 31 December, 2024, reached £506.6m, up 6.2 per cent year on year from £476.9m.

In-store revenue rose 3.9 per cent, outperforming the wider market. The British Retail Consortium (BRC) have estimated that in-store sales fell 1.5 per cent in 2023.

Panmure Liberum analysts rated the stock a ‘buy’, adding that shares “should rise rapidly” in the future.

“We see more than just a reversal of the 16 per cent fall in the shares over the past year,” analysts added, estimating a surplus cash flow of around £26m.

Chief executive Darcy Willson-Rymer said: “Growth was driven by further progress against our strategic initiatives and execution of our commercial offer.

“Expanded ranges and our compelling gift and celebration essentials offer increased basket values during the period, whilst we also saw a resilient performance in seasonal cards, with customers responding well to our strong value and quality ranges.”

Card Factory expected adjusted profit before tax in line with current market expectations of £65.7m to £67m, with a mid-to-high single digit percentage increase in adjusted profit before tax in the 2026 financial year.

It said that while increases to national employers contributions (NICs) will add around £14m to its wage bill in the 2026 financial year, it expects to offset these costs without passing them on to customers.

“Continued revenue growth, combined with the benefits of our productivity and efficiency programme, have enabled us to navigate a challenging retail environment and deliver a robust performance in the second half.

“As a result, we expect to deliver full year profits in line with expectations and remain well positioned to manage inflationary pressures in the near term, as we continue to deliver on our strategic growth ambitions,” Willson-Rymer said.