Halfords Group PLC revises profit forecast for fiscal year 2024

Halfords Group PLC has updated its financial outlook for the financial year ending March 29, 2024, revising downward its pre-tax profit forecast. Initially, the company forecast a profit of between £48m and £53m, but this range was adjusted to £35-40m due to a significant weakening in the market. The cycling, motorcycle and consumer tire sectors particularly suffered, leading to lower revenues.

This revision is mainly attributed to continued weak consumer confidence and unfavorable weather conditions which impacted store traffic and sales of seasonal products. Additionally, an increase in competition in the cycling sector has put additional pressure on profit margins.

Despite these challenges, Halfords has seen continued growth in its Autocentres sector, highlighting continued consumer demand for maintenance and repair services. Halfords remains cautious about the near-term market recovery for fiscal year 2025, while anticipating a similar pre-tax profit to 2024, assuming a marginal improvement in market conditions.

The company remains confident in its long-term strategy and growth prospects, despite the downward revision of forecasts for the current fiscal year due to exceptionally difficult market conditions.