British bicycle and car products retailer Halfords Group on Wednesday said it expects pre-tax profit for its fiscal year 2026 to be weighted to the second half of the year as economic uncertainty and shifting consumer habits weigh on growth.
British retailers are bracing for a difficult year ahead, as rising employer social security contributions and wages, combined with shifting consumer demand in an inflationary environment hinder growth.
“While inflation appears to be moderating and interest rates are falling, the negative outlook for employment and the impact of geopolitical instability continues to weigh on confidence and is keeping the savings ratio high despite rising real incomes,” the company said.
Halfords said it plans to offset costs in its current fiscal year through continued pricing, buying and cost actions, adding that trading in the first few weeks of this year were in line with expectations.
The company reported an underlying pre-tax profit of 38.4 million pounds ($52.30 million) for the year ended March 28, above average analysts consensus of 36.3 million pounds, as per a company poll, helped by cost-saving and pricing measures.
In April, Halfords named Henry Birch its new CEO, replacing Graham Stapleton, who was at the helm for seven years.
($1 = 0.7342 pounds)
(Reporting by Raechel Thankam Job in Bengaluru)
