Halfords Group (HFD) Trading Update summary

H1 FY25 performance

• Group like-for-like sales were broadly flat at -0.1% versus a strong prior year comparative of +8.3%

• Gross margin expanded due to price optimisation and better buying, as FX headwinds eased

• On track to deliver £30m in full-year savings to offset approximately £35m of expected inflation

• Autocentres LfL sales grew 0.8% against a prior +18.0%, with strong services growth but challenging tyre sales

• Retail LfL sales declined 0.7%, with motoring products resilient and performance cycling outperforming

Strategic and operational highlights

• Lower stock and strong cash generation further strengthened the balance sheet

• 17 of 25 planned Fusion towns delivered, with the remainder due by year-end, outperforming business case

• Motoring Loyalty Club membership grew to over 4 million from 3.4 million in FY24

• Avayler’s contract with Bridgestone reached a key milestone, with a US pilot go-live imminent

• Focus remains on optimising the platform and investing in high-return areas, including 14 more Fusion locations

Outlook

• Short-term outlook remains uncertain, especially for big-ticket discretionary purchases

• FY25 outlook unchanged, with continued focus on wage inflation and end-market variability

• Investment prioritised in areas with strong near-term returns, particularly Fusion concept expansion

• Services and B2B-led strategy has helped absorb over £130m of inflation since FY20

• Next update scheduled for late November 2024