Halfords posts 7.1% like-for-like sales growth in first half
Key Facts
Halfords' like-for-like sales rose 7.1% in the current first half, according to a trading update reported by Investing, outpacing growth in the previous comparable period. The update covered the 26 weeks ended 2 October, with interim financial results due in November. Retail like-for-like sales increased 7.7% in the current first half, outpacing the group as a whole. The performance follows the company's August increase in its underlying pre-tax profit forecast to a range above market consensus at the time. Halfords expects profit for the year to be weighted towards the first half, alongside plans to accelerate investment in marketing and technology in the second half.
A comparison with the previous first-half trading update shows accelerating like-for-like sales growth across the group and its retail business, according to figures cited by Investing in its coverage of that update. Group growth in that period was 4.1% over the 26 weeks ended 26 September. Retail like-for-like sales increased 4.0% at the time, lagging the group. Autocentres recorded growth of 4.3% in the previous first half, outperforming retail in that period. The current retail growth rate was therefore above its previous level, while current group growth exceeded the rates recorded by both businesses in the earlier comparison.
On financial results, Halfords reported revenue of £893.3 million for the previous first half, according to Investing's coverage of the interim results at the time. That compared with revenue of £864.8 million in the corresponding period a year earlier, marking an increase between the periods. Underlying pre-tax profit rose to £21.2 million in the previous first half. The comparative profit figure was £21 million, according to the same coverage, indicating a limited increase in this measure. Those results combined higher revenue with a slight improvement in underlying pre-tax profit, with the increase in profit remaining smaller than the increase in revenue.
Also providing a backdrop to the current performance, the previous annual results showed underlying pre-tax profit rising to £45.4 million, according to Investing's coverage of the June results. Annual profit growth was 4.1%, on a comparable basis for the 52 weeks ended 3 April. On gross profitability, coverage of the annual results showed the margin widening by 210 basis points. The gross profit margin reached 52.8%, a level the coverage described as "the highest in a decade". The margin improvement and increase in underlying pre-tax profit formed the backdrop to the annual results that preceded the company's August increase in its profit guidance range.
Halfords raised its underlying pre-tax profit forecast for fiscal 2027 in August to a range of £55 million to £65 million, according to Investing. Market consensus for this measure stood at £52.6 million when the upgrade was announced. The bottom of the company's announced range was above that consensus, placing its entire forecast above prevailing market estimates at the time. Following the August update, Halfords shares rose 11.56% to 268.85 pence, according to coverage of the 27 August 2026 trading session. Those gains were linked to the announcement of the profit forecast upgrade in August, before the trading update for the first half ended in October.
On the distribution of profit during the current year, Halfords expects underlying pre-tax profit to be weighted towards the first half, according to details of the update reported by Investing. The company plans to accelerate marketing investment in the second half of the year. Plans to accelerate investment spending also include technology over the same timeframe. These plans give the second half a different investment timetable from the first half covered by the sales update. Halfords plans to announce its next interim results on 26 November 2026, the next announced date for reporting the period's results.