[UK] Card Factory blames living wage increase for profits slump

In the UK, the high street greetings cards and gift retailer Card Factory has blamed the national living wage increase for its profits slump, The Times reports.

Card Factory shares dropped 16 per cent on September 24 after first-half pre-tax profits fell 43 per cent to £14 million. 

Many UK businesses have spoken out about the impact of rising wages on profits after the national living wage rose in April by 9.8 per cent to £11.44 an hour.  

Card Factory reportedly said that, despite the profit drop, full-year revenues were still on track to meet expectations. 

The retailer said it continued to manage the impact of “inflationary pressures within the business”, such as higher shipping and packaging costs.

Shares in Card Factory - which had risen 8 per cent over the past year - fell 23¼p to 119¾p. 

Source: The Times

In the UK, the high street greetings cards and gift retailer Card Factory has blamed the national living wage increase for its profits slump, The Times reports.

Card Factory shares dropped 16 per cent on September 24 after first-half pre-tax profits fell 43 per cent to £14 million. 

Many UK businesses have spoken out about the impact of rising wages on profits after the national living wage rose in April by 9.8 per cent to £11.44 an hour.  

Card Factory reportedly said that, despite the profit drop, full-year revenues were still on track to meet expectations. 

The retailer said it continued to manage the impact of “inflationary pressures within the business”, such as higher shipping and packaging costs.

Shares in Card Factory - which had risen 8 per cent over the past year - fell 23¼p to 119¾p. 

Source: The Times