Halfords Hits a Dead‑End on Profit Pace — 2024/25 Looks Slower than a Gravel Ride
When the bike‑bike market’s denting stakes start to slow, the retailer is feeling the crunch: an 18.3% dip in pre‑tax profits to £36.1 million for the year ending 29 March.
What’s Making Wheels Turn Slow
- Soft sales conditions have lingered since the end of last year, so the group is playing it cautious over the next two years.
- Consumers are ticking their feet, holding back on big‑ticket items like bikes and tyres because the cost of living is a real dent to the everyday hand‑hold.
- Inflation, freight, and wages are all climbing higher than an uphill finish, squeezing margins.
- The post‑pandemic cycling boom is cooling, and competitors are aggressively slashing prices and launching promotional push‑ups that leave Halfords feeling the pressure.
CEO’s Take (Because It’s Hard to Explain the Numbers with a Bandana)
Graham Stapleton said: “The Autocentres business was the star performer yet again – that was delivered even though drivers keep deferring unsafe tyre replacements.”
Expert Insight
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, weighed in: “Growth not only stalled for Halfords in 2024, but actually reversed, with low consumer confidence hitting demand for bikes, tyres and other big‑ticket items. Combined with rising costs, it meant profit fell by almost a fifth.”
Halfords’ Workout (Hint: It’s a Cost‑Cutting Circuit)
- Cutting expenses where possible (think fewer unnecessary coffees and bigger tyre stock)
- Keeping an eye on the market trends, like where customers are feeling the pinch of inflation.
- Censuring that the business remains as agile as a BMX rider on a narrow trail.
Bottom Line
Halfords is still in a tight corner, but it’s tackling what it can control. With consumer confidence wobbling and ongoing inflationary pressures, 2025 could be another tough ride.
