Halfords Upgrades Profit Outlook Amidst Summer Boost
Company cites strong seasonal demand and strategic modernisations for improved financial projections.
Sarah Connor
Halfords has significantly upgraded its annual profit outlook.
The company "continued to outperform over recent months," attributing this to "momentum in the underlying business as we continue to deliver against our strategic priorities alongside a very strong performance in seasonal categories, in part reflecting unusually warm summer weather."
Heightened seasonal demand for products like bikes, camping, and air conditioning services delivered extra profits of around £5 million since the start of summer.
Continued to outperform over recent months.
Company shares surged 11 percent at the open to 271p. Year-to-date gains now exceed 90 percent.
Halfords also returned to profit in its previous financial year, marking a 4.8 percent increase in like-for-like sales.
The annual results are now expected to be weighted to the first half, the company confirms.
Halfords has opened over 100 Fusion garages, integrating retail and garage services. It plans to open another 35 this year.
Its repair services continued to gain traction; the firm believes Britain's aging car stock presents a significant opportunity for growth.
The company modernizes its network by introducing electric vehicle servicing equipment and providing staff with tablets for inspections.