Shares round-up: ASOS, Card Factory, AG Barr

Photo: Education Images/Universal Images Group via Getty Images.

Self-help measures by ASOS (LSE:ASC) and the new Funky Pigeon owner Card Factory (LSE:CARD) were today outweighed by ongoing worries over the impact of a soft consumer backdrop.

ASOS used a full-year update to report a big margin improvement, having cleared excess stock and built a new commercial model where it targets the delivery of “healthier” full-price sales.

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Card Factory’s half-year results showed the benefit of productivity and efficiency efforts to mitigate higher wage costs. At the same time, it has targeted a structurally growing market through this summer’s acquisition of online business Funky Pigeon from WH Smith.

Despite their strategic progress and the support of some Buy recommendations in the City, the pair’s shares ranked among today’s worst performers in the FTSE All-Share.

In contrast, AG Barr (LSE:BAG) remained near a six-year high after the Irn-Bru and Rubicon brand owner reported a 20% improvement in half-year adjusted profit to £35.2 million.

Margin expansion of 200 basis points to 15% was driven by manufacturing efficiencies, while revenues rose 3.1% to £228.1 million after a strong performance by the Boost energy range.

The company said it entered the second half year with good momentum, having achieved “meaningful positive progress against our strategic plans”. An interim dividend of 3.44p a share is due to be paid on 7 November, representing a quarter of the previous year’s final dividend.

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Shares dipped 7p to 671p, although they are 10% higher this year. Peel Hunt, which has a target of 750p, said: “The first-half profits provide a solid base for the full-year numbers and the second half will see it spend more on marketing as it builds its long-term growth platform.”

Former high-flying stock ASOS fell to its lowest level since April as lower-than-expected sales in the 2025 financial year cast a cloud over the progress of its multi-year turnaround programme.

The group’s focus on higher full-price sales and lower markdown activity lifted the gross profit margin by 350 basis points year-on-year, with the benefit of operational and cost efficiencies boosting profit per order by about 30% year-on-year.

Annual underlying earnings for the year to September should be at least 60% higher, although the figure is set to be towards the lower end of its £130 million-£150 million guidance range.

The company remains confident of achieving consensus estimates for the 2026 financial year, which point to adjusted earnings of £173 million and free cash flow of £8 million.

Shares fell 30p to 263p, although Berenberg said it remains constructive on ASOS’s recovery and growth potential after maintaining its Buy rating and 600p price target.

Peel Hunt, which cut to 335p, added: “ASOS has fixed its operational challenges and moves forward with a £2.5 billion sales base and 15 million-plus active customers. Demonstrating relevance and growth is the final stage of the turnaround.”

Card Factory shares fell 5.2p to 100.6p after half-year results clouded market optimism over the potential of August’s £24.1 million acquisition of Funky Pigeon from WH Smith.

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The deal, which will be earnings accretive in the next financial year, makes Card Factory the second-largest online card and attached gifting retailer in the UK market.

In the meantime, the company continues to operate in a challenging consumer environment.

It has also ramped up productivity and efficiency efforts to mitigate the significant impact from higher wage costs and other inflationary pressure.

Investment in a new point-of-sale till system meant half-year adjusted profits fell 9% to £13.2 million, with like-for-like sales up 1.5% thanks to a 4.1% rise in average basket value.

An interim dividend of 1.3p a share is due to be paid on 12 December, an increase of 4.9% on a year earlier as the group continues to target an improved second-half performance.

UBS, which lifted its price target by 10p to 170p following the results, said: “We remain positive on Card Factory’s self-help to offset £20 million inflation in the 2026 financial year and see Funky Pigeon as a key growth lever to a structurally growing online market.”