Card Factory Delivers more Disappointment

Thursday, July 9: As concerns surrounding US and Chinese trade wars lingered as ever, there was no huge market movers today. Across Europe was generally positive, with Germany’s DAX closing a quarter percent higher, while France’s CAC 40 closed flat. In Asia this morning the Hang Seng managed to deliver yet again strong gains, finishing 0.84% higher although the Nikkei posted a modest loss of 0.08%. At home the FTSE was hit by a raft of shares going ex-dividend, offsetting a further decline in the value of the pound versus major currencies. Tui lost over 9% early in the session before recovering to close only 2.5% lower. In their latest results they cited the UK’s unusually warm weather. The CEO backed full year guidance but stated they would not exceed these projected results as a result of more people choosing ‘staycations’.

Card Factory shares were also hit today after issuing a profit warning, citing extreme weather again but this time referring to the cold weather earlier in the year. The profit warning comes after a string of poor updates for the firm over the last 12-18 months. Like for like sales were down and they now rely on a strong Q4 to help results out, a key period for any company dealing with greeting cards. Shares close the day 10.7% lower.

Cineworld results have been given a boost from their acquisition of US based Regal Entertainment. First half profit before tax was up 194.4% as EPS grew 35.4%. Obviously distorted from the boost from Regal but nevertheless investors have been encouraged from the group’s progress and this subsequently sent shares over 10% today.

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