Halfords Cuts Profit Forecast Amid Weak Sales and Wet Weather

The retailer adjusts its profit expectations to £35m-£40m for the year, citing poor sales in cycling and motoring divisions.

Halfords issues an unscheduled profit warning, revising its profit forecast down from £48m-£53m to £35m-£40m due to weak sales in its cycling and motoring divisions.
The company attributes the downturn to low customer confidence, unusually mild but very wet weather, and an increase in consumers buying bicycles on credit.
Sales in January saw an 8% drop in the cycling division and a 5.1% decrease in retail motoring, with the consumer tyres market declining by 4.3%.
Despite the short-term challenges, Halfords remains confident in its long-term growth prospects and strategy.
Analysts express concern over the retailer's medium-term profit target and note inventory levels are 30%-50% higher than pre-Covid levels, potentially leading to further earnings pressure.