Shares of Halfords, the UK’s largest motoring and cycling retailer, jumped 11% on Thursday after the company raised its underlying profit guidance for the fiscal year ending March 2027. The retailer now expects underlying profit before tax of £55-65 million, significantly exceeding the £52.6 million consensus among analysts.
The upgraded outlook follows the release of Halfords’ annual results for the 2026 fiscal year in late June, when the company outperformed expectations and guided toward the upper end of its prior forecast for FY2027. The stock reached 267.35p during the session, near a 52-week high of 274.5p, and was last quoted at 267.50p.
The company attributed the improved outlook to the ongoing execution of its ‘Fit for the Future’ transformation strategy, which has driven operational momentum across its Retail and Autocentres divisions. Additionally, an unusually warm British summer boosted demand for seasonal products, contributing an estimated low-million-pound incremental profit to the bottom line.
The FTSE 250, the UK mid-cap index in which Halfords is listed, closed slightly higher in the prior session, reflecting a constructive backdrop for consumer-focused equities. The stock’s surge underscores investor confidence in the retailer’s ability to sustain growth amid shifting market conditions.
