The Canadian bank said Halfords delivered a solid performance in FY26, with improved execution across retail and autocentres driving gross‑margin expansion to a decade high and supporting resilient profit growth despite cost inflation.
Group revenues rose 2.9% to £1.76bn, up 4.8% on a like‑for‑like basis, with retail LFL sales up 4.1% and autocentres ahead 5.8%. Gross profits increased 7.3% to £932.3m, lifting margins 210bps to 52.8%. Adjusted underlying earnings rose 3.1% to £56.4m, while underlying pre-tax profits increased 4.1% to £45.4m, or £41.5m excluding an accounting change.
Canaccord said execution in the 'Optimise' phase of Halfords' 'Fit for the Future' strategy was delivering clear gains, particularly in autocentres, where EBIT margin improved to 3.1%, while retail benefited from stronger category management and improving digital capability, including higher AI‑driven traffic and conversion.
Additionally, Canaccord also noted that momentum has continued into FY27, with April-June trading prompting upgraded guidance. Management now expects underlying pre-tax profits at the top end of Halfords' £45.7m to £52.3m range, leading Canaccord to raise its FY27 pre-tax profit forecast by 16% to £52m and reiterate its 'buy' rating.
Reporting by Iain Gilbert at Sharecast.com