Halfords posts 7% H1 sales rise but warns investment will curb H2 profit

Halfords, which operates 367 stores, two performance-cycling outlets and 497 consumer garages, reported a 7.1% rise in group like-for-like sales for the six months ending October 2. Retail sales grew 7.7%, driven by a 7.3% increase in its motoring division and an 8.3% jump in cycling, while the autocentres segment posted a 6.1% sales uplift. The company attributed the momentum to its strategic focus and unusually warm weather that boosted seasonal categories such as bikes, camping equipment and air-conditioning services.

In August, Halfords lifted its profit outlook, maintaining a target of £55-£65 million underlying pre-tax profit for the year. However, it cautioned that planned investments will compress earnings in the second half, a note that sent its shares lower. CEO Henry Birch expressed confidence in the business and said more detail will be provided at the interim results announcement next month.