Card Factory says Funky Pigeon acquisition is already boosting online growth
Card Factory has said its acquisition of Bristol-based Funky Pigeon is already strengthening its position in the fast-growing online greetings cards and gifts market.
The Wakefield-headquartered retail group bought Funky Pigeon from WH Smith for £25.7m last August, making Card Factory the second largest online card and attached gift retailer in the UK.
Funky Pigeon, founded in Bristol by entrepreneur Richard Pepper in 2009, has since been restructured under Card Factory ownership, with the group putting a combined digital leadership team in place.
In comments accompanying its preliminary results for the year ended 31 January, Card Factory said the acquisition was “accelerating our digital capabilities and strengthening our platform for future online growth”.
The group said the deal had also created a stronger foundation for growth by giving both brands a clearer proposition, supported by a single technology platform and a more efficient fulfilment model designed to reduce operating costs.
Funky Pigeon was previously owned by Swindon-headquartered WH Smith, which acquired the business from Richard Pepper in 2010.
Card Factory reported revenue of £582.7m for the year, up 7.4% from £542.5m the previous year. Pre-tax profits fell to £43.9m, compared with £64.1m in FY25.
Total digital sales reached £20.6m, including a £13.5m contribution from Funky Pigeon.
The retailer also opened a net total of 27 new stores during the year, taking its UK and Republic of Ireland estate to 1,117 stores as of 31 January.
Darcy Willson-Rymer, chief executive of Card Factory, said:
Despite a challenging consumer backdrop in FY26, we continued to execute our strategy to transform cardfactory into a global celebrations group, underpinned by targeted investment and disciplined cost management.
We are encouraged by the positive contributions of our acquired businesses, with the acquisition of Funky Pigeon accelerating our digital capabilities and strengthening our platform for future online growth.
Softer high street footfall in the second half, particularly during our peak trading period, impacted full-year performance, with Adjusted PBT being delivered in line with our revised guidance.
The group remains highly cash generative, and our ‘Simplify & Scale’ efficiency and productivity programme will continue to help mitigate inflationary headwinds.
Card Factory said it is continuing to monitor the situation in the Middle East and the potential impact on direct input costs, including container rates, energy and fuel surcharges.
It also warned that ongoing geopolitical instability is creating uncertainty around inflation and consumer sentiment.
For FY27, the business said it currently expects adjusted pre-tax profits to be in line with market consensus of between £54.8m and £60.5m.
