Halfords

Ticker HFD

Today's data summary

Market closed
% change
+2.19%
Price Pence
163.50
Change
+3.50
As of 17:31 06 Dec 2019
Market cap. Pound sterling
325.56 million
As of 17:31 06 Dec 2019

Latest updates

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
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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.

Halfords 'on track' despite profits fall

BBC Business News

Half-year profits at Halfords have fallen by more than a fifth because of restructuring costs.

The Redditch-based retailer said pre-tax profits fell 23% to £28.2m for the six months to 28 September. Revenue was up 2.5% to £599.9m, with like-for-like retail sales rising 2.3%.

Halfords store
PA

Graham Stapleton, recently appointed chief executive of Halfords, said profits were broadly in line with expectations: "Despite the challenging UK consumer environment, we delivered a robust sales and cash-flow performance in the first half."

Short-term demand for bikes to 'remain challenging'

Adjusting a cycle wheel
Halford

More on Halfords.

The car parts to cycling group expects full pre-tax profit to be broadly flat.

Like-for-like retail sales rose by 2.3% while same store revenue at its autocentres grew by 3.3% in the half year to 28 September.

Despite the strong growth in like-for-like sales, interim pre-tax profit fell by 23% and it said "short-term conditions for discretionary spend to remain challenging".

It said "short-term conditions for discretionary spend to remain challenging".

It added: "Whilst we remain confident in the long-term growth prospects for the cycling market, we expect the short-term conditions to remain challenging given that cycling is a discretionary category and not immune to consumer uncertainty."