Share price slumps by more than 20% at Card Factory

Card Factory’s share price plunged today – 24 September – wiping about £100m off the value of the the high street chain.

The price was down nearly 21% late this afternoon to 113.20p.

Earlier today the Wakefield-headquartered business revealed its pre-tax profits had fallen by 43.3% to £14m in the six months ending July, which it partly attributed to higher staff costs.

The UK’s National Living Wage rose by about 10% to £11.44 from April for those aged 21 and over, while the National Minimum Wage for younger people and apprentices rose by 12% to 21%.

Card Factory explained its employee pay rise led to store and warehouse wages contributing to gross margins declining by 4.2 percentage points to 32.6%.

And the business said its earnings were hit by higher freight costs and the “phasing of strategic investments”.