Halfords has upgraded its annual profit forecast after Britain’s unusually hot and dry summer drove a surge in demand for bicycles, camping equipment and air-conditioning services.
The car parts and bicycle retailer said “heightened seasonal demand” had generated about £5 million of additional profit, helping offset cost pressures across its garage and retail operations.
Halfords now expects underlying pre-tax profit for the current financial year to reach 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 group jumped more than 13 per cent in early trading on Thursday as investors welcomed the upgrade.
“Halfords has continued to outperform over recent months,” the company said.
“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 comes as Halfords attempts to extract more growth from its core automotive operations while managing higher labour and operating costs.
Like-for-like sales increased 4.8 per cent in the company’s previous financial year, helped by the modernisation of its garage estate and rising demand for e-bikes.
Its consumer garages business, which includes repairs and MOT testing, performed more strongly during 2025-26 as the company expanded its Fusion format, combining retail and garage operations at the same sites.
Halfords has now opened more than 100 Fusion garages and plans to add another 35 this year, as it seeks to increase the productivity of its physical estate.
The company has also been restructuring its workforce to contain the impact of higher wages and employer national insurance costs. Measures include moving staff towards busier garages and reducing its reliance on more expensive agency workers.
At the same time, Halfords is investing in the technical capabilities of its garages as the UK vehicle fleet becomes increasingly electrified.
Most sites have now been equipped with specialist electric vehicle servicing equipment, while the group plans to introduce tablets for staff to support vehicle inspections.
The stronger summer performance has nevertheless raised questions over how much of the profit improvement can be sustained once seasonal conditions return to normal.
Retail analysts at Peel Hunt said the unusually warm weather and increased staycation activity had benefited Halfords, but argued that the company was also taking market share.
“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,” the analysts said.
“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.”
For Halfords, the immediate boost from the weather provides welcome breathing room as it works to improve the economics of its garage network and capture structural demand from Britain’s ageing car fleet and the transition towards electric vehicles.
The challenge will be converting a summer windfall into sustainable growth once the heatwave fades.
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