Halfords backs FY profit guidance as revenues rise

Halfords backed its full-year profit guidance on Wednesday following a good performance across the business, as it reported a rise in revenues.

In an update for the 20 weeks to 19 August, the retailer said revenues rose 9.2% compared to FY22. However, on a like-for-like basis, they were down 1.9% against strong prior year comparatives, when sales benefited from the UK emerging from the final Covid lockdown.

Halfords highlighted a particularly strong performance in its autocentres business, with LFL sales up 28.2% versus FY20 and 19.4% compared with FY22. This was driven by increased market share, enabled by productivity improvements from the group's Avayler technology.

Chief executive Graham Stapleton said: "Over 70% of our sales now come from motoring products and services, and the fact that this area of spend tends to be more needs-based rather than discretionary is leading to a very resilient group performance, despite the wider macroeconomic uncertainty."

Based on trading to date, Halfords continues to target full-year underlying pre-tax profit of £65m to £75m. This assumes no material changes in the macroeconomic environment or consumer spending patterns in the remainder of FY23.