Sep 4, 2019
Halfords blames consumer fears for third profit warning
Halfords issued its third profit warning in a year, blaming weak consumer sentiment and poor summer weather for a £5m-£10m reduction in anticipated profits. The cycles and car parts retailer said that sales in the first 20 weeks of its financial year were down 3.9 per cent on the same period last year and that full-year underlying pre-tax profit would be in a £50m-£55m range, down from £58.8m last year. The company had expected sales growth in cycling to be weak after relatively strong comparative figures last year, when a warm summer encouraged bike sales. Halfords said it increased market share overall - with sales of consumables like wiper blades, bulbs and car batteries remaining robust - but consumers were buying fewer of the more expensive items such as in-car technology. Analysts said the latest profit warning moved the company's guidance in line with consensus forecasts and that they expected a full-year dividend cut.
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