Halfords Group PLC: Trading Update: Upgrade to FY25 profit expectation

DJ Halfords Group PLC: Trading Update: Upgrade to FY25 profit expectation

Halfords Group PLC (HFD) 
Halfords Group PLC: Trading Update: Upgrade to FY25 profit expectation 
28-Jan-2025 / 07:00 GMT/BST 
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/ 
2014 WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR"). UPON THE 
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION WILL BE CONSIDERED TO BE 
IN THE PUBLIC DOMAIN. 
 
28 January 2025 
Halfords Group plc 
Upgrade to FY25 profit expectation based on recent trading and continued strategic progress 
Recent Trading 
   -- Like-for-like ('LfL') sales growth was positive in Q3 (H1: flat) in both Retail and Autocentres. 
   - Retail traded well over the peak trading period as our product and promotional proposition resonated 
    well with customers, notably in Cycling, where Christmas gifting contributed to LfL sales growth of 13.1% in 
    December. 
   - Autocentres saw strong performance in the more profitable and strategically important Services, 
    Maintenance and Repair ('SMR') market. LfL SMR sales growth in consumer garages reached 10.3% in Q3, supported 
    by our Fusion Motoring Services rollout and offsetting continued weakness in the consumer tyres market. 
 
   -- Current trading has benefitted from the colder weather in more recent weeks with Motoring Product 
  delivering LfL sales growth in January of 5.5%. 
   -- Hedged FX rate in cost of goods sold expected to be better than previously anticipated in FY25. 
   -- Freight headwind now expected below the previously guided GBP4m-GBP7m range. 
   -- Costs continue to be well-managed and on-track to exceed the GBP30m full-year target previously indicated. 
 
FY25 Outlook 
In the interim results announcement published in November we noted ongoing market volatility through the first half of 
FY25 and indicated that we expected this to continue through the second half of the year. In recent months we have seen 
an improvement in trading alongside continued progress on a number of key initiatives, including our pricing and 
promotion strategies and cost reduction measures. Cumulatively, these factors lead us to expect FY25 underlying profit 
before tax of GBP32m to GBP37m. 
FY26 and Beyond 
Despite the recent positive performance, there remains considerable uncertainty regarding the outlook for the UK 
consumer in light of measures introduced by the Autumn Budget, which take effect from April and hence are in force for 
the entirety of FY26. While the impact of changes to the minimum wage and national insurance contributions are 
relatively easy to quantify, adding c.GBP23m to our direct labour costs in FY26 alone as announced in November, their 
effects on the demand environment and health of the broader economy are harder to predict. We also continue to expect 
to see inflation passed through on managed services. We continue to work on possible mitigations for the additional 
costs we face and will share our plans alongside our FY25 results. 
Next Update 
Our next update will be an FY25 trading statement in April. 
For further information: 
Investors: 
Holly Cassell, Director of Investor Relations & ESG     [e-mail] 
Media: 
Rob Greening / Steve Marinker / Jane Glover, Sodali & Co.  [e-mail] 
 
The person responsible for releasing this announcement is Tim O'Gorman, Company Secretary. 
 
Notes to Editors 
www.halfords.com      www.avayler.com     www.tredz.co.uk   www.halfordscompany.com 
Halfords is the UK's leading provider of motoring and cycling services and products. Customers shop at 377 Halfords 
stores, 2 Performance Cycling stores (trading as Tredz), 636 consumer and commercial garages (trading as Halfords 
Autocentres, McConechy's, Universal, National Tyres and Lodge Tyre) and have access to 268 mobile service vans (trading 
as Halfords Mobile Expert and National) and 502 commercial vans. Customers can also shop at halfords.com and 
tredz.co.uk for pick up at their local store or direct home delivery, as well as booking garage services online at 
halfords.com. Through its subsidiary Avayler, Halfords also sells the Group's bespoke, internally developed software as 
a service ("SaaS") solution to major clients in the US, Europe and Australia. 
Cautionary statement 
This report contains certain forward-looking statements with respect to the financial condition, results of operations, 
and businesses of Halfords Group plc. These statements and forecasts involve risk, uncertainty and assumptions because 
they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that 
could cause actual results or developments to differ materially from those expressed or implied by these 
forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing 
in this announcement should be construed as a profit forecast. Except as required by law, Halfords Group plc has no 
obligation to update the forward-looking statements or to correct any inaccuracies therein. 
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Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse 
Regulation (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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ISIN:      GB00B012TP20 
Category Code: TST 
TIDM:      HFD 
LEI Code:    54930086FKBWWJIOBI79 
OAM Categories: 2.2. Inside information 
Sequence No.:  373057 
EQS News ID:  2075693 
 
End of Announcement EQS News Service 
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January 28, 2025 02:00 ET (07:00 GMT)