Halfords Faces Profit Decline Amid Waning Bike Sales and Rising Costs

The retailer reports a significant drop in profits, affected by decreased demand for bikes and high inflation.

Halfords' pre-tax profits fell by 18.3% to £36.1 million, with statutory profits down 45%.
Cycling sales dropped nearly 3%, while the overall group saw a 5% growth due to Autocentres' performance.
The company has been forced to heavily discount bikes to clear excess stock accumulated during the pandemic boom.
High inflation and increased freight costs have added substantial financial pressure on the retailer.
Halfords is pausing some long-term investments and seeking efficiencies, including AI technology, to manage costs.