Clinton Cards warns on second-half outlook

London: British cards and gift retailer Clinton Cards warned the outlook for its second half was below its previous expectations as it slumped to a first-half loss.

The firm, which trades from 628 Clinton Cards stores and 139 Birthdays outlets, said yesterday its strategic review was on track for completion at the end of April.

It said the review's outcome would begin to benefit the business from the end of the second half in July.

The review is being led by Chief Executive Darcy Wilson-Rymer, a former Starbucks executive who joined the firm in October.

He is examining all aspects of the firm's activities, including whether the Birthdays chain has a future in the group.

Tough conditions

The firm said it would engage with its stakeholders, including lenders, when the review is complete.

Clinton Cards is battling tough trading conditions as well as intense competition from supermarkets and the internet.

It made a pretax loss of £3.7 million (Dh21 million) in the 26 weeks to January 29 compared with a profit of £11.7 million in the same period last year.

Revenue fell 4.5 per cent to £197.1 million, with sales at stores open more than a year down 1.1 per cent, while profit margins fell as old stock had to be cleared in its January sale and a higher proportion of lower margin gifts were sold.