Home Business NewsBusinessAutomotive News Halfords full year results hits reverse gear

Halfords full year results hits reverse gear

27th Jun 24 9:47 am

Halfords annual profits have hit reverse gear, as the retailer has remained under pressure as sales for bikes has fallen.

In the year to 29 March Halfords reported an 18.3% fall in underlying pre-tax profits of £36.1 million.

Continued soft trading conditions since year-end meaning the group remains cautious for 2024/25.

Chief executive Graham Stapleton said, “The Autocentres business was the star performer yet again – this was delivered despite a challenging tyre market, where drivers continue to delay the replacement of unsafe tyres.”

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, said, “Growth not only stalled for Halfords in 2024, but went into reverse, with low consumer confidence hitting demand for bikes, tyres and other big ticket items. Combined with rising costs, it meant profit fell by almost a fifth.

“Unfortunately, the outlook for 2025 doesn’t look much better. Halfords has continued to see caution from its customers, and inflation remains a problem, with both freight and wages rising strongly.

“Consumer confidence is clearly being impacted by cost of living pressures. But this isn’t the full story. The post-pandemic cycling boom is unwinding. In addition, competition is fierce and increased promotional activity, especially in cycling, has clearly hit Halfords hard and put pressure on margins.

“Overall, Halfords is in a tough spot. It is rightly focusing on what it can control – like cutting costs. But unfortunately, there is a lot that is out of its hands. With consumers still feeling the pinch and on-going inflationary pressures, 2025 is shaping up to be another difficult year.”

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