Greeting cards retailer Card Factory reported an increase in revenue for the first half of its fiscal year, despite ongoing challenges from declining foot traffic on the high street. The company attributed the rise partly to the acquisition of online rival Funky Pigeon, which it completed last year for £24 million.

For the six months ending July 31, Card Factory’s revenue grew to £260.8 million, marking a notable improvement driven by expanding digital sales channels. Digital revenue climbed by £12.8 million, representing a nearly fourfold increase of 397.9 percent, largely fueled by the integration of Funky Pigeon’s customer base.

However, the company’s adjusted profit before tax experienced a slight dip, falling to £12.7 million from £13.2 million in the same period the previous year. This decrease reflected additional costs associated with merging Funky Pigeon into Card Factory’s operations.

Shares in Card Factory responded positively to the results, closing up 7.1 percent at 78 pence, reflecting investor confidence in the company’s strategy to grow its digital presence amid an evolving retail landscape.

The results underscore Card Factory’s efforts to offset declining in-store sales by boosting its online offerings, positioning the company to benefit from a continued shift toward e-commerce in the greeting cards market.