Halfords has raised its annual profit outlook after unusually warm and dry summer weather boosted demand for its seasonal product ranges. The retailer, which sells car parts and bicycles, said the “heightened seasonal demand” for items such as bikes, camping equipment and air conditioning services delivered extra profits of around £5 million.
Profit forecast raised
The company now expects underlying pre-tax profits for the current financial year of between £55 million and £65 million. 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.
Shares in the FTSE 250 firm jumped more than 13% in early trading on Thursday following the announcement.
Sales momentum and strategic progress
Halfords said: “Halfords has continued to outperform over recent months. This reflects momentum in the underlying business as we continue to deliver against our strategic priorities alongside a very strong performance in seasonal categories, in part reflecting unusually warm summer weather.”
The upgrade follows a 4.8% rise in like-for-like sales in its previous financial year, helped by modernised garages and demand for e-bikes. Trading across its consumer garages business, which includes car repairs and MOTs, improved in 2025-26 after the opening of dozens of Fusion garages that combine retail and garage services. More than 100 such garages have been opened, with another 35 planned this year.
Cost management and modernisation
The company has been working to improve workforce efficiency and cut labour costs in response to higher wages and national insurance increases. Steps include redeploying staff to busier garages and reducing reliance on more expensive agency workers.
Halfords has also modernised its network by introducing specialist electric vehicle servicing equipment at most sites and plans to provide staff with tablets to support vehicle inspections.
Retail experts at Peel Hunt said: “We sense that staycations have been more of a ‘thing’ this year than normal, but we have no doubt that this is a market share gain for Halfords. It is highly reassuring to see it executing well and reaching its sales potential when demand is high. Of course, this may be difficult to replicate next year, when presumably the weather will normalise, but it is in the bag for this year now.”
