Halfords has upgraded its annual profit outlook after Britain’s prolonged hot and dry summer boosted demand for its seasonal ranges. The car parts and bicycle retailer said the unusually warm weather had delivered extra profits in the “mid-single digit millions of pounds” since the start of the summer.
Profit forecast raised
The company now expects underlying pre-tax profits of between £55 million and £65 million for the current financial year. That compares with £45.4 million in the 52 weeks to March 27 and is ahead of its previous guidance of £48.9 million to £55.1 million.
Halfords said the improvement reflects “momentum in the underlying business” as it continues to deliver against its strategic priorities, alongside a “very strong performance in seasonal categories, in part reflecting unusually warm summer weather.”
Offsetting rising costs
The upgraded outlook adds to efforts to ramp up trade and offset rising costs across its garage business and retail arm. The company said it has continued to outperform in recent months.
