Halfords lifts profit targets on heatwave boost
The sun has shone on Halfords’ summer trading as the motoring and cycling retailer lifted its profit targets in response to “very strong” recent sales. The FTSE 250 firm had previously been tipped for a £52.6m pre-tax profit this year but said on Thursday that it now hopes to make between £55m and £65m. In [...]
Halfords, the motoring and cycling retailer, has raised its profit targets for the year due to a "very strong" performance in recent summer sales. The FTSE 250 firm had initially projected a pre-tax profit of £52.6 million for the year, but now anticipates a profit of between £55 million and £65 million. In an unscheduled update to investors, Halfords revealed that it has "outperformed" in recent months due to higher-than-expected sales in its summer ranges.
The warmer-than-usual summer weather is believed to have contributed significantly to the increase in demand for seasonal products, driving the retailer's profit growth. The company, renowned for selling bikes, cycle and motoring repair services, and assorted seasonal goods such as camping and barbecue gear, plans to invest the extra cash into its tech and marketing departments.
This will result in a greater emphasis on the first half of the year in terms of its full-year performance. Analysts at RBC Capital Markets noted that the surge in sales was likely driven by the retailer's cycling, camping, and air conditioning ranges.
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