Halfords boosts guidance after bumper year, shares soar

25th Jun 2026 09:52

(Sharecast News) - Shares in Halfords Group motored ahead on Thursday, after the car-to-cycling retailer posted improved annual earnings and boosted guidance.

The firm, which has around 370 stores and nearly 500 garages, said revenues rose 2.9% in the 52 weeks to 27 March, £1.76bn, or by 4.8% on a like-for-like basis, with solid growth across both the retail and autocentre divisions.

Group underlying pre-tax profits sparked 4.1% to £45.4m, slightly ahead of forecasts.

Halfords attributed much of the improvement to the successful launch of its new strategy, dubbed Fit for the Future, which it said was designed to build near-term value through "disciplined and focused execution". Measures include rolling out a fusion garage concept and reviewing pricing and promotional offers in retail.

"Fit for the Future...has begun well and is already supporting stronger financial returns, alongside improved customer experience," it noted. "We see considerable opportunities for further value creation and have generated good momentum into the 2027 full year."

Halfords confirmed that trading since the period end had been "strong", further supported by improved market conditions.

As a result, it now expects full-year underlying pre-tax profits to come in at the top end of the consensus range.

As at 0930 BST, the FTSE All-Share stock has surged 16% at 208p.

Henry Birch, chief executive, said: "With good sales growth, higher margins and an increased dividend, we are delivering improved shareholder returns alongside a more compelling customer proposition.

"These are early days in our growth strategy and there is still much to do to leverage Halfords' clear strengths."

Shore Capital, which has a 200p price target on the stock, said: "While the consumer backdrop remains uncertain, with the 2027 full year profit expected to be at the top end of consensus we reiterate our 'buy' recommendation and expect to upgrade our forecasts."

Halfords also announced on Thursday that it had appointed Jock Lennox as chair designate. Lennox, who spent 30 years with Ernst & Young and is the current chair of Johnson Service Group, is replacing Keith Williams, who is stepping down after an eight-year tenure. Lennox will join the board as non-executive director on 1 September before becoming chair at the annual general meeting later that month.

See latest RNS on Investegate