Halfords has further downgraded its profit expectations, pointing to a continued weakening in three of its four markets.
Decline in Profit Expectations
The motoring-and-cycling products provider announced on Wednesday that it anticipates underlying pretax profit for the 52 weeks ending March 29 to fall between 35 million to 40 million pounds ($44.4 million and $50.7 million). This is a significant drop from the previously adjusted range of GBP48 million-GBP53 million, which was announced in November.
Market Challenges
Halfords attributed the revised profit expectations to struggles in its cycling and retail motoring markets. The company cited weak customer confidence and unfavorable weather conditions, such as unusually mild and very wet weather, affecting store footfall and sales.
Looking Ahead
The company expressed caution for the market recovery in the short-term but indicated confidence in their strategy and long-term growth prospects. Despite challenges in forecasting due to market volatility, Halfords expects underlying pretax profit in fiscal 2025 to be similar to that of fiscal 2024.
Conclusion
While acknowledging the impact of challenging market conditions on profit guidance, Halfords maintains confidence in its strategic direction and growth outlook.
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