Shares in Halfords Group PLC (LSE:HFD) bounced strongly off a five-year low as the retailer said profits for the past year are expected to be at the upper end of its previous guidance, allowing CEO Graham Stapleton to leave on a high.
As of today, Stapleton has stepped down after seven years as CEO. He will be succeeded by Henry Birch, former CEO of the online retailer Very Group, previously in the same role of Rank Group and William Hill's online business.
Halford was helped by a strong second half, which saw like-for-like sales grow 2.3% for the year to 28 March 2025.
As a result of this, and exceeding its £30 million cost-saving target to offset inflation, the bikes and car accessories chain said it expects underlying group profit before tax to be "around the upper end" of the £32-37 million previously guided range.
Gross margin gains accelerated in the second half, driven by pricing optimisation, procurement efficiencies and favourable currency hedging.
Retail LFL sales rose 1.7%, with second-half growth improving in both Motoring and Cycling. Autocentres sales grew 3.7% despite a weaker consumer tyres market, supported by strong demand in services, maintenance and repair work.
The company highlighted strong performance from its Fusion store formats, which integrate motoring services across local stores and garages, with converted sites delivering up to a 50% sales uplift and expected to double their contribution.
Management now plans to convert at least half of the remaining 150 identified sites in the new financial year.
Looking ahead, Halfords said it expects to fully offset the direct cost impact from the National Insurance and other changes from the Autumn Budget, including £23 million in additional labour expenses, but flagged continued volatility in retail sales and an uncertain consumer outlook.
As it does not export or import goods to or from the US, Halfords said it has "no direct exposure" to new US tariffs, but an indirect impact on the supply chain, including on product costs, freight rates and shipping times "remains to be seen, as does the impact on consumer spending".
Shares in the company jumped 11% to 137.76p on Tuesday morning, having recently sunken below 115p for the first time in almost five years.