Halfords shares surged 11.56% to 268.85 pence on Thursday, reaching their highest level in four years as the British motoring and cycling retailer raised its underlying profit forecast for the fiscal year ending March 2027.
The upgrade follows stronger-than-anticipated trading performance and momentum across its core businesses, with the company citing progress under its Fit for the Future strategy. Seasonal demand, particularly in cycling and outdoor products, was bolstered by unusually warm summer weather, which Halfords estimates added mid-single-digit millions of pounds to its profit outlook.
Halfords now expects underlying profit before tax for FY27 to range between £55 million and £65 million, surpassing the current market consensus of £52.6 million. The forecast also exceeds the consensus range of £48.9 million to £55.1 million reported by analysts.
The retailer’s shares outperformed the FTSE 250 index, which was trading flat during the same session. The stock’s previous peak at this level occurred in late March 2022.
For the current financial year, Halfords reported a 4.8% increase in like-for-like sales, alongside a 210-basis-point expansion in gross margins. Underlying profit before tax rose to £45.4 million, while free cash flow totaled £25.3 million. The company ended the period with reported net cash of £19.1 million.
FY27 earnings are expected to be more heavily weighted toward the first half of the financial year, with planned increases in technology and marketing spending in the second half aimed at supporting long-term growth.
