Halfords Pulls Back on Profit Forecast Amid Bad Weather
Halfords, the well‑known UK retailer of automotive and cycling gear, has just trimmed its profit outlook for the year ending 29 March. The company says damp weather and a dip in customer confidence were the main culprits behind the sales slowdown.
Originally, the group had projected pre‑tax earnings of £48 million to £53 million for the fiscal year (announced in January). Now they’re looking at a more modest range of £35 million to £40 million.
What the Management Says
- “We’ve lowered our guidance due to a few very tough and exceptional short‑term market conditions.”
- “We’re still confident in our long‑term strategy and growth prospects.”
- “Once core markets bounce back, the platform we’ve built positions us well for future success.”
Analysts’ Take
Freedom of the press: Liberum analysts warned that this update is likely to hit Halfords’ stock price hard today. They continue to view the group’s medium‑term profit target of £90 million to £110 million as optimistic.
They also point out that inventory levels are still 30 %‑50 % above pre‑COVID levels, which could add additional earnings pressure as the company tries to clear out stock.
