Halfords slashes profit guidance as 'weak customer confidence' hits sales

28 February 2024 , 09:06

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Halfords said the cycling market has also become more challenging and competitive, leading to higher levels of promotions to boost sales (Image: PA Archive/PA Images)

Halfords has cut its profit forecast for the current financial year due to a "significant drop" in sales across most of its key markets.

The company blamed "weak customer confidence and unusually mild and very wet weather", which affected demand for both cycling and motoring products. On Wednesday, Halfords said it now expects pre-tax profits of between £35 million and £40 million for the year to March 29.

This is down from its previous forecast of between £48 million and £53 million. The company said that lower customer confidence and mild, wet weather not only reduced footfall in stores but also lowered demand for some products, such as winter car accessories and car cleaning products.

The cycling market has also become more challenging and competitive, leading to higher levels of promotions to boost sales. Despite this, Halfords said it has seen "good growth" continue across its autocentres business.

The company stated: "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."

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