Halfords has said full-year profits are expected to come in around the upper end of market expectations after stronger trading across both its retail and autocentre divisions.
It announced today that group like-for-like sales rose 4.8 per cent in FY26, with retail sales up 4.1 per cent and autocentres, excluding Avayler, climbing 5.8 per cent.
Within its retail arm, motoring like-for-like sales increased 2.9 per cent, while cycling sales grew 6.4 per cent.
Halfords said underlying profit before tax was now expected to land towards the top end of the current consensus range of £36m to £41.2m, helped by further gross margin growth and tight cost control.
Halfords added that it remained cash generative and ended the period in a net cash position.
Despite warning that conflict in the Middle East was contributing to an uncertain macroeconomic backdrop, Halfords said trading in March and April had remained in line with expectations.
The group said the majority of its FY27 energy costs and foreign exchange requirements were hedged, while freight rates had largely been contracted in advance, giving it greater visibility and helping to mitigate near-term volatility.
As a result, Halfords said it was “comfortable” with consensus expectations for FY27 underlying profit before tax of between £42m and £48.6m.
Halfords chief executive Henry Birch said: “I am pleased to see the positive results that are starting to materialise from the ‘optimise’ phase of our ‘Fit for the Future’ strategy as we focus on driving operational excellence and strengthening our foundations for future growth.
“This momentum further underlines the significant potential that exists within the Halfords business, and I look forward to sharing more detail on our progress at our full-year results announcement in June.”
Birch also thanked the retailer’s 12,500 staff across its stores and garages, saying they had “played a critical role in delivering this performance”.
“They are the heart of this business and will continue to make Halfords the nation’s first choice for motoring and cycling, providing our customers with the helpful advice and service that keeps them moving day after day,” he added.
Halfords is due to publish its FY26 preliminary results on 25 June.
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