Halfords lifts profit target after heatwave fuels summer sales
The UK motoring and cycling retailer raised its full‑year profit forecast as a hot summer boosted demand for bikes, camping gear and other seasonal items.
Halfords announced on Thursday that it now expects pre‑tax profit of between £55m and £65m for the year, up from an earlier estimate of £52.6m. The lift follows a string of "very strong" sales weeks that the company attributes to an unusually warm summer.
Profit outlook lifted
The FTSE 250 group said recent trading had "outperformed" expectations, prompting the board to revise its guidance. Shares jumped 11 per cent to 269p in early trading, reflecting investor optimism.
“This reflects momentum in the underlying business as we continue to deliver against our strategic priorities alongside a very strong performance in seasonal categories, in part reflecting unusually warm summer weather,” the retailer said.
Seasonal sales drive growth
Higher demand for summer‑related products, from bicycles and camping equipment to air‑conditioning units, added millions of pounds to the bottom line, according to the company. Analysts at RBC Capital Markets pointed to the retailer's cycling, camping and climate‑control ranges as the main contributors.
The firm plans to channel part of the extra cash into technology and marketing, meaning the first half of the year will carry more weight in the full‑year results.
Looking ahead
After a post‑pandemic slump, the company has been on a recovery path. Former chief executive Graham Stapleton left in April after seven years, and his successor Henry Birch, ex‑Very, has overseen an expansion of the garage network. In June, Halfords surprised the market by turning a £44m pre‑tax profit, reversing a £30m loss the year before.
Analysts remain cautiously upbeat. While the "Fit for the Future" plan shows early signs of progress, they note that broader macro‑economic and political uncertainty could pressure discretionary spending on items such as leisure gear.
Overall, the upgraded profit target underscores a rebound in the UK motoring and cycling sectors and suggests that a warm summer can have a material impact on retail earnings.
