Halfords shares crash on latest profit warning

Halfords shares crash on latest profit warning

halfords

Shares in Halfords have crashed after the retailer issued yet another profit warning.

The retailer said that expected profits have fallen from the previous estimate of £70 million down to between £58 million and £62 million this year.

Halfords said on Thursday that sales in the group fell due to weaker consumer confidence and the mild weather.

“This has been a challenging third quarter for the business, driven by exceptionally mild weather and ongoing weak consumer confidence. Together, these factors have led us to reduce our profit expectation,” said Graham Stapleton, the chief executive.

“Halfords is a robust business and we firmly believe that the strategy we outlined in September is the right direction for the business,” he added.

The group’s last profit warning came in May last year when the bike specialist said profits would come in flat. In September, the retailer said that profits would not rise in 2020.

Stapleton joined Halfords in January after the former boss left to join Marks & Spencer. 

Shares in Halfords (LON: HFD) are trading down 19.45% (1009GMT).