Halfords Group (HFD) Trading Update summary

FY25 performance highlights

• Like-for-like sales grew 2.3%, with gross margin gains accelerating in H2 due to pricing optimization and favorable FX rates.

• Underlying profit before tax expected at the upper end of the £32m–£37m guidance range.

• Autocentres delivered 3.7% LfL sales growth, driven by strong Services, Maintenance, and Repair work.

• Retail LfL sales turned positive in H2, with FY25 LfL sales up 1.7% across Motoring and Cycling.

• Outperformed £30m cost saving target, offsetting inflationary pressures.

Strategic initiatives and operational updates

• Fusion rollout continues, with converted locations seeing up to 50% sales uplift and plans to accelerate conversions in FY26.

• Halfords Motoring Club surpassed 5 million members, now responsible for nearly half of MOTs and generating £18m in annualized subscription revenue from premium members.

• Strong cash generation and disciplined working capital management resulted in a net cash position at year-end.

• No direct exposure to new US tariffs, but monitoring potential indirect supply chain impacts.

Outlook and cost mitigation

• Minimum wage and National Insurance changes to add £23m in direct labor costs in FY26, with mitigation plans in place through pricing, efficiencies, and strategic initiatives.

• Confident in mitigating the full inflationary impact from the Autumn Budget in FY26, though retail sales volatility and consumer uncertainty persist.

• Further details on FY26 priorities to be provided with FY25 results in June.