Shares in Card Factory fell by over 25% in early trading after the retailer lowered its profit guidance for the year to between £55m and £60m.

The firm, which sells greeting cards, gifts and celebration products, said its guidance revision follows "well publicised" pressures on the UK consumer that have impacted confidence, which has led to soft high street footfall.

Card Factory added that these conditions have persisted as it moved into its most important trading period, leading it to lower its expectations for the current financial year.

The retailer said it remains confident in its long-term strategy, which includes the effective execution of its ‘Simplify and Scale’ productivity and efficiency programme, while the performance of its other businesses, including those in the Republic of Ireland and North America remain in line with expectations.

Card Factory’s integration with Funky Pigeon remains on track, while its share buyback programme will continue.

Head of markets at AJ Bell, Dan Coatsworth, described the update as a "nightmare before Christmas".

He concluded: "Just as the advent of email and text communication kiboshed sending letters, the writing is also on the wall for sending Christmas cards.

"It’s not just the cost of sending an item by post that’s causing a headache. Weaker high street footfall is also a problem as Card Factory is heavily dependent on passing trade.

"Whereas some retailers like clothing companies have the internet channel to drive sales, Card Factory is very much a physical store-led business. At the half-year results it bemoaned an 11.3% drop in online like-for-like sales, citing a strategic shift to focus on higher margin sales such as gifts and party supplies. Greetings cards are its bread and butter, and most people will buy them in person."

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