Halfords posts profit rise as strategy pays off

Halfords, which runs a garage services arm alongside its core retail division, said that the current phase of its ‘fit for the future’ strategy has “begun well and is already supporting stronger financial returns, alongside improved customer experience”.

The retailer reported underlying pre-tax profit on a 52-week basis up 4.1% to £45.4m in the year to April 3. Group sales rose 4.8% like for like,  retail was ahead 4.1% and autocentres rose 5.8%.

Halfords chief executive Henry Birch said: “I am very pleased with the progress we are making in the ‘optimise’ phase of our strategy, resulting in the strong results we are announcing today. 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 much still to do as we seek to leverage Halfords’ clear strengths: leading market positions, an unmatched physical and digital presence in motoring and cycling, a trusted brand, and a unique services proposition made possible by more than 12,000 expert colleagues.”

The retailer was confident about the outlook and said: “Actions taken in FY26, alongside some market recovery, have created significant momentum in the business and trading in April, May and June has been strong. We are confident that further progress on the ‘optimise’ phase of the strategy in FY27 will continue to deliver benefits in this and future years.

“We have not yet seen any changes to customer behaviour from the recent conflict in the Middle East, but we remain sensitive to its potential impact on consumer sentiment and spending power and would expect any impact to take effect from the second half of 2026.”