Halfords issues another profit warning as demand for cycling falls flat

Halfords has issued another profit warning as the cycling and motoring retailer continued to be impacted by a “weakening” demand for its goods. 

Shares in the firm fell by over 25 per cent this morning as the market responded to the news.

The London-listed retailer said it expects profit before tax for the full year to be in the range of £35m to £40m. 

This is lower than its previously reduced guidance of between £48m to £53m. 

Halfords board said: “Whilst we have reduced our profit guidance as a result of very challenging and exceptional short-term market conditions, we remain confident in our strategy and longer-term growth prospects.”

“When our core markets recover, the platform we have built leaves us exceptionally well-placed to succeed.”

The company, which operates over 400 stores across the UK, said both of its core markets have been impacted by weak customer confidence and “unusually mild and very wet weather”. 

Volume in the retail motoring market fell year-on-year by 5.1 per cent in January and volume in the cycling market fell year-on-year by 8.0 per cent.