Halfords

Ticker HFD

Today's data summary

Market closed
% change
+3.51%
Price Pence
64.90
Change
+2.20
As of 10:54 05 Apr 2020
Market cap. Pound sterling
129.23 million
As of 10:54 05 Apr 2020

Latest updates

Pedal power helps Halfords

Halfords shop
PA

Halfords says it is on track to meet profits forecasts after strong sales of bicycles over the last three months.

Bike sales rose 5.9%, with a record number of kids' cycles leaving the shops, the retailer said in a trading update.

The firm's autocentres also "performed strongly". For the full-year 2020, the company said underlying pretax profit would come in the range of £50m to £55m, in line with guidance.

However, there was a note of caution. Graham Stapleton, chief executive, said: "Though pleased with our performance, market conditions remained subdued and we are not anticipating a near-term improvement."

Halfords sees half-year profits fall

halfords
Getty Images

Half-year profits at Halfords have been dented by weakened consumer confidence. The car parts, bikes and camping retailer said pre-tax profits for the 26 weeks to 27 September fell 2.5% to £27.5m.

Halfords said one cause was "consumers delaying big-ticket discretionary purchases, reflecting the current economic and political uncertainty".

It added: "Our motoring and cycling products businesses remain core but, beyond this, we need to deliver a substantial shift to services in order to drive growth and address the headwinds faced by retailers of products."

Halfords is 'well controlled'

Are today's figures from Halfords bad news from the firm? Not really, reckons Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. She said:

Halfords’ saving grace is its position as a specialist, the likes of Amazon and other online competitors can’t compete with the face-to-face service on offer. The fact is, the internet can’t fix your headlights for you, or offer personal recommendations on the right bike for your child. The other piece of good news is costs have been well controlled, meaning even as trading conditions have become more difficult, the core of the business has been able to keep its head above water.

'Unhelpful weather' blamed for profits slump at Halfords

BBC Business News

Worcestershire-based bicycles and car parts retailer Halfords has reported an 18% fall in annual profit to £58.8m from £71.6m.

Halfords
Getty Images

The company, which has its head office in Redditch, blamed weak consumer confidence, unhelpful weather and investment in the business.

Halfords kept its guidance for profit in its new financial year to be broadly in line with 2018-19, though it cautioned the current economic environment and consumer confidence remained challenging.

Profits slump at Halfords

Halfords store
Getty Images

British bicycles and car parts retailer Halfords has reported a 18% fall in annual profit to £58.8m from £71.6m.

The company blamed weak consumer confidence, unhelpful weather and investment in the business.

Halfords kept its guidance for profit in its new financial year to be broadly in line with 2018-19, though it cautioned the current economic environment and consumer confidence remained challenging.

Mixed trading for retail stocks

The FTSE 100 has trimmed earlier falls and is now down 0.16% at 6,895.88.

Retailers were among the biggest blue chip risers.

Sainsbury's, which reported its Christmas sales figures on Wednesday, saw it share price rise 2.46% to 279.25p.

Marks and Spencer's stock is 1.94% ahead at 283.15p, Morrisons is ahead 1.7% at 220.35p and Tesco's share price is up 1.23% at 214.4p.

On the FTSE 250, however, retailers are the largest fallers.

Halfords, which warned on profits today, saw its share price drop 21.25% to 219p while Card Factory dropped 11.72% to 171.3p.

Tesco stocks rise but Halfords' plunge

City of London
Getty Images

It is a mixed bag on the stock market this morning for the many retailers that have reported their Christmas trading figures.

Tesco, which announced strong like-for-like sales, saw its share price rise 1% to 213.9p.

Meanwhile, Marks & Spencer's stock dropped 1.33% to 274p.

After an early rise of more than 4%, Debenhams' shares have now given up those gains to trade at 5.64p.

Halfords' shares plunged by 21% to 220p following a profit warning while Card Factory's stock is down 12.64% at 170p.

DFS' shares are marginally ahead at 206p.

Overall, the FTSE 100 is down 0.51% to 6,871.69. The FTSE 250 is 0.23% lower at 18,370.61.

Halfords blames mild weather for profit warning

Halfords
Getty Images

Halfords has issued a profit warning after like-for-like sales fell 1.7% for the 14 weeks to 4 January.

The cycling and car maintenance retailer said it was impacted by mild winter weather in November and December, plus weak consumer confidence, which meant retail motoring sales dropped 3.4% compared to the same period in the previous year, while retail cycling sales dipped -0.3%.

Although there was growth in children's cycling and cycle accessories, this was offset by a decline in bigger ticket items like adult bikes.

"This has been a challenging third quarter for the business, driven by exceptionally mild weather and ongoing weak consumer confidence. Together, these factors have led us to reduce our profit expectations," said Halford's chief executive Graham Stapleton.