Home Business News Halfords cuts profits guidance

Halfords cuts profits guidance

by Amy Johnson LLB Finance Reporter
28th Feb 24 10:48 am

Halfords had cut their profits guidance for the financial year as “wet weather” and “weak customer confidence” were partly to blame on sales.

The retail group said on Wednesday they are expecting to deliver in the year to 29 March pre-tax profits between £35 million and £40 million.

Halfords had said in January their pre-tax profits was to be between £48 million and £53 million.

Halfords said: “Whilst we have reduced our profit guidance as a result of very challenging and exceptional short-term market conditions, we remain confident in our strategy and longer-term growth prospects.

“When our core markets recover, the platform we have built leaves us exceptionally well-placed to succeed.”

Analysts at Liberum said: “This is clearly another disappointing update and we expect the shares to suffer today.

“The negative earnings momentum continues to reinforce our long-held view that the group’s medium-term pre-tax profit target of £90 million to £110 million is very stretching.

“In the near term, we also note that inventory levels stand some 30%-50% higher than pre-Covid levels, which may bring further earnings pressure through the need to clear inventory.”

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