Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


UK’s Halfords expects pricing efforts to drive profits

UK’s Halfords expects pricing efforts to drive profits

By Sarah Young

LONDON (Reuters) -Halfords forecast profit would rise 3% in its current financial year, saying its efforts to keep prices low should help it to retain customers squeezed by inflation that limits their power to spend on bikes and motoring.

British inflation held at 8.7% in May, according to data released on Wednesday, defying expectations for it to drop, and meaning the country still has the highest rate of any major advanced economy.

Halfords, which sells bikes and is the UK’s biggest provider of motoring services and products, said trading since the start of its new financial year in April had been strong and its plan to grow market share was on track.

Chief Executive Graham Stapleton said Halfords is investing in prices to keep them low, putting resources into growing its loyalty club and offering customers interest-free financing so they can spread the cost of replacing car tyres over a longer period.

“Customers are spending more time thinking carefully about big ticket discretionary spend, not just in bikes, but everywhere,” Stapleton said in an interview.

Shares in Halfords, which have risen 14% in the last three months, traded up 5% in early deals.

Cost inflation last year was 68 million pounds ($86.56 million), Stapleton said, but he forecast it would fall to 30 million pounds in the current financial year.

While the cost of energy, labour and currency remains high, there is deflation in the cost of bicycles and rubber-based products, he said.

For the 12 months to the end of March 2024, Halfords said it was comfortable with analysts’ consensus forecast for underlying pretax profit of 53.3 million pounds, compared to the 51.5 million pounds reported for last year.

That result was a fall of 38% on the previous year, resulting from the cost of living crisis and a tough comparison against the COVID-era when people had more to spend on bikes and tyres.

($1 = 0.7822 pounds)

(Reporting by Sarah Young; editing by James Davey and Barbara Lewis)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts