Halfords slashes profit forecasts as wet weather hits sales

Halfords has considerably revised down revenue forecasts after moist climate and reductions affected gross sales.

It’s the newest signal of the damaging impression of rain and unseasonably excessive temperatures on the retail sector, the largest space the place cash is spent within the UK economic system.

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The climate affected the variety of folks coming into outlets – in addition to gross sales of winter automobile merchandise and automobile cleansing objects.

Halfords additionally mentioned it had been hit by low buyer confidence, that means persons are much less prepared to spend cash.

There was a “significant” fall in gross sales throughout a spread of classes, Halfords mentioned in a buying and selling replace.

The variety of automobile objects purchased in January fell 5.1 share factors, biking gross sales dropped 8 share factors, whereas tyre purchases have been down 4.3 share factors.

More reductions and promotions have meant the biking market has change into “more challenging and competitive”, Halfords mentioned.

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Customers are more and more buying on credit score, which is resulting in decrease margins on the sale of bikes and biking items than beforehand anticipated.

As a outcome, revenue expectations earlier than tax have been revised downwards to the £35m to £40m vary for the complete 12 months, in contrast with the earlier forecast of £48m to £53m.

Wet climate is the principle motive retail gross sales volumes have fallen prior to now 12 months.

Retailers have been hit by document rainfall in some elements of the nation in July, whereas November spending fell to COVID-19 lockdown ranges.

Low exercise on this financial metric performed an element within the UK getting into recession.

Source: information.sky.com”