Britain’s prolonged hot and dry summer has handed Halfords a significant earnings boost, prompting the retailer to upgrade its annual profit outlook for the current financial year.
The car parts and bicycle chain said “heightened seasonal demand” for products including bikes, camping gear, and air conditioning services delivered extra profits of around £5 million.
Halfords now expects underlying pre-tax profits of between £55 million and £65 million for the current financial year, a notable step up from previous guidance of £48.9 million to £55.1 million.
That revised forecast also marks a substantial improvement on the £45.4 million the company posted in the 52 weeks to March 27, underscoring the scale of the weather-driven trading uplift.
Shares in the FTSE 250 firm surged more than 13% in early morning trading on Thursday, reflecting strong investor enthusiasm for the improved earnings outlook.
Halfords said in a statement: “Halfords has continued to outperform over recent months.”
The company added that the performance “reflects momentum in the underlying business as we continue to deliver against our strategic priorities alongside a very strong performance in seasonal categories, in part reflecting unusually warm summer weather.”
The upgrade builds on already solid momentum, with like-for-like sales rising 4.8% in the previous financial year as the company modernised its garage network and capitalised on growing demand for e-bikes.
Trading across Halfords’ consumer garages business, which covers car repairs and MOTs, strengthened throughout 2025-26 following the rollout of its Fusion garage format that integrates retail and workshop services under one roof.
The company has now opened more than 100 Fusion garages and is targeting a further 35 openings during the current financial year as it pushes ahead with its transformation strategy.
Halfords has also been working to contain rising labour costs driven by higher wages and national insurance increases, redeploying staff to busier locations and cutting reliance on agency workers.
The retailer is investing further in modernisation, equipping most sites with specialist electric vehicle servicing technology and planning to provide staff with tablets to support vehicle inspections.
Retail analysts at Peel Hunt offered a broadly positive reading of the results, though flagged some caution around repeatability into next year.
Peel Hunt said: “We sense that staycations have been more of a ‘thing’ this year than normal, but we have no doubt that this is a market share gain for Halfords.”
The analysts added: “It is highly reassuring to see it executing well and reaching its sales potential when demand is high.”
Peel Hunt noted: “Of course, this may be difficult to replicate next year, when presumably the weather will normalise, but it is in the bag for this year now.”
