Halfords (HFD) stock jumped nearly 12% on Thursday after the British motoring and cycling retailer raised its full-year profit forecast, hitting its highest share price since late March 2022.
The stock climbed 11.56% to 268.85 pence, sharply outpacing the FTSE 250, which was flat on the day.
Halfords now expects FY27 underlying profit before tax of between £55 million and £65 million. That compares to the current market consensus of £52.6 million, which had a range of £48.9 million to £55.1 million.
The upgraded forecast comes after stronger-than-expected trading in the early part of the new financial year.
📊 EUROPEAN STOCK MOVERS | 08:32 BST
Some big moves across European stocks this morning:
🟢 Leaders
🚀 Halfords Group: 269.00 (+11.62%)
🟢 Vestas: 215.40 (+3.66%)
🟢 ASML: €1,520.60 (+1.54%)🔴 Laggards
🔻 Boliden: 568.40 (-2.57%)
🔻 Novo Nordisk: 298.95 (-1.97%)
🔻 Pernod…— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 27, 2026
The company pointed to two main drivers: its strategic initiatives gaining traction, and unusually warm summer weather pushing up demand for cycling and outdoor products.
Halfords said the weather-related tailwind alone is expected to add mid-single-digit millions of pounds to profit.
Halfords said FY27 earnings are expected to be more heavily weighted toward the first half of the year.
That is partly because the company plans to increase spending on technology and marketing in the second half. Management was clear that this step-up in investment reflects a deliberate long-term growth plan, not any softness in underlying trading.
So investors are balancing a higher profit outlook against the knowledge that spending will increase as the year progresses.
The upgrade follows a strong FY26. Like-for-like sales rose 4.8%, underlying profit before tax came in at £45.4 million, and gross margin expanded by 210 basis points.
Free cash flow reached £25.3 million, and the company ended the year with £19.1 million in reported net cash.
Halfords has been working to build a more resilient, service-led business under its “Fit for the Future” strategy. The raised forecast suggests that effort is starting to show up in the numbers.
The company said recent trading has continued to outperform its own expectations as strategic initiatives gain traction.
Halfords was added to the FTSE 250 on August 4, following the improvement in its financial performance and strategy execution. That gives the stock greater visibility with institutional investors.
The company said the current profit upgrade reflects both seasonal demand and the ongoing benefits of its strategic shift.
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