Halfords raises profit forecast to £55m to £65m after strong summer trading

Halfords has upgraded its profit forecast after a strong summer and continued outperformance in its business in recent months.

The motoring and cycling retailer now expects its underlying pre-tax profit to be between £55 million and £65 million in its current financial year, ahead of current consensus of £52.6 million.

Halfords said it has seen a strong performance in seasonal categories due to this summer’s heatwave. It estimates that the heightened seasonal demand has resulted in incremental profit in the mid-single-digit millions of pounds.

The retailer also said that it expects its FY27 performance to be further weighted towards the first half of the year, as it accelerates investment in technology and marketing in its second half.

In June, Halfords reported an increase in annual sales and profit as its Fit for the Future strategy gained traction. In the 52 weeks to 27 March, revenue rose from £1.71 billion to £1.76 billion as underlying pre-tax profit increased to £45.4 million from £43.4 million a year earlier.

At the time, the retailer said that the latest phase of the strategy had begun well and was helping to drive stronger financial returns and an improved customer experience.