Halfords has reduced its profit expectations for the current fiscal year due to poor weather deterring customers from buying cycling and automotive products.
The company’s shares fell by 26% after it cited low consumer confidence and unusually mild and rainy conditions as factors that negatively impacted the demand for both cycling and automotive items.
Halfords now anticipates pre-tax profits to be in the range of £35 million to £40 million for the year ending March 29, a decrease from the previously projected £48 million to £53 million.
This revision in profit guidance comes after the company experienced a notable decline in retail revenues, attributed to underperformance in its cycling, retail automotive, and consumer tyres divisions.
The company observed that the cycling and retail automotive sectors suffered due to reduced customer confidence and adverse weather, lessening in-store traffic and decreasing the need for certain products like winter car accessories and car cleaning items.
Additionally, the cycling market has faced increased challenges and competition, leading to more aggressive promotional strategies to stimulate sales amidst market consolidation.
Halfords’ shares were swapping for 147.90p as of 9.40 am, down 26.27%
