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![\"Halfords](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/shutterstock_1224275011-696x464.jpg\" "\\"Halfords")
<\/div>\nHalfords has lowered its annual profit forecast range to the lower end of previous expectations as it warned of a softening in discretionary big ticket products, despite posting strong sales and profits.<\/p>\n
In the 26 weeks to 29 September 2023, the motoring and cyclist specialist saw revenue growth of 13.9% to \u00a3873.5m with like-for-like sales growth of 8.3% achieved despite a \u201cchallenging macro environment\u201d.<\/p>\n<\/div>\n
Revenues across its retail and autocentres increased 3.2% and 33.9% respectively, while underlying profit before tax rose 15.8% to \u00a321.3m compared to the same period last year.<\/p>\n<\/div>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nIn the first half of the year, the company reported market share gains in all categories, ahead or in line with expectations.<\/p>\n
It said categories, such as retail motoring and motoring services, showed strong growth and were in line with expectations but discretionary markets such as cycling, were \u201cchallenging and below expectations\u201d due to the tough consumer environment.<\/p>\n
The business now expects underlying profit before tax for 2024 to fall within the range of \u00a348m pounds to \u00a353m. It had previously forecast a \u00a348m \u2013 \u00a358m range.<\/p>\n
Chief executive Graham Stapleton said: \u201cDespite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth, and increased market share across the business. At the same time, we supported our customers through the ongoing cost of living crisis by delivering great value\u00a0\u00a0\u2013 when they need it most.\u201d<\/p>\n
\u201cIn the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I\u2019m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns. In light of this, we are accelerating capital investment in\u00a0\u00a0the garage services operating model and customer experience in ten towns in the balance of this financial year.\u201d<\/p>\n
In the first half of the year, the company reported market share gains in all categories, ahead or in line with expectations.<\/p>\n
It said categories, such as retail motoring and motoring services, showed strong growth and were in line with expectations but discretionary markets such as cycling, were \u201cchallenging and below expectations\u201d due to the tough consumer environment.<\/p>\n
The business now expects underlying profit before tax for 2024 to fall within the range of \u00a348m pounds to \u00a353m. It had previously forecast a \u00a348m \u2013 \u00a358m range.<\/p>\n
Chief executive Graham Stapleton said: \u201cDespite the challenging and volatile trading environment and slower than expected recovery in some of our markets, we have made a good start to the year, with substantial sales and profit growth, and increased market share across the business. At the same time, we supported our customers through the ongoing cost of living crisis by delivering great value\u00a0\u00a0\u2013 when they need it most.\u201d<\/p>\n
\u201cIn the face of continuing economic uncertainty, we remain fully focused on optimising every element of the business, and I\u2019m particularly pleased with the very strong performance of Autocentres, where we are delivering significantly improved returns. In light of this, we are accelerating capital investment in\u00a0\u00a0the garage services operating model and customer experience in ten towns in the balance of this financial year.\u201d<\/p>\n