Halfords Raises FY25 Profit Expectations Amid Positive Q3 Sales

Halfords Group PLC has upgraded its profit expectations for FY25 following favorable trading results and strategic advancements. The company reported positive like-for-like (LfL) sales growth in both Retail and Autocentres during Q3, attributed to successful product promotions and a strategic focus on Services, Maintenance, and Repair (SMR) in consumer garages.

The colder weather recently boosted sales of Motoring Products, contributing to a 5.5% LfL sales increase in January. Additionally, better-than-expected hedged FX rates and reduced freight costs have positively impacted the company's financial outlook. Halfords now projects an underlying profit before tax for FY25 between £32m and £37m.

Despite this optimism, significant uncertainty remains regarding the UK consumer outlook for FY26 due to forthcoming Autumn Budget measures affecting labor costs and economic demand. Halfords continues to explore potential mitigations for expected cost increases.