Halfords posts sales and profit growth as Fit for the Future strategy delivers
Halfords has posted an increase in annual sales and profit as its Fit for the Future strategy gains traction.
In the 52 weeks to 27 March, revenue grew from £1.71 billion to £1.76 billion as underlying pre-tax profit rose to £45.4 million from £43.4 million a year earlier.
Subscribe to TRBWhile like-for-like sales increased by 4.8%, with retail and autocentres sales up 4.1% and 5.8% respectively, gross margin rose by 210bps to reach 52.8%, its highest level in a decade.
Halfords said the new phase of its Fit for the Future strategy had begun well and is supporting stronger financial returns and an improved customer experience.
This has included laying the foundations for a new category management approach in retail following a review of pricing and promotional strategies and the launch of in-store trials. Halfords has also invested in its digital platform and brand to improve the online customer experience and raise awareness of its motoring services proposition.
Henry Birch, chief executive of Halfords, said: “I am very pleased with the progress we are making in the ‘Optimise’ phase of our strategy, resulting in the strong results we are announcing today.
With good sales growth, higher margins and an increased dividend, we are delivering improved shareholder returns alongside a more compelling customer proposition. These are early days in our growth strategy and there is much still to do.”
Giving an update on progress in the new financial year, Halfords said trading in April, May and June has been strong. It now expects its FY27 underlying pre-tax profit to come in around the top end of a consensus range of £45.7 million to £52. 3 million, with performance weighted towards the first half of the year.
Halfords has also announced that Keith Williams to step down as chair and be succeeded by former EY partner Jock Lennox, who will take up his position in September.
Birch said: “Keith has been an exceptional chair and has guided Halfords through significant change over the last eight years. We welcome Jock Lennox to the Halfords board as our new chair and look forward to working with him in the years ahead.”
