Halfords has appointed a new chief executive as it reported rising revenues amid a “very challenging” trading environment and rising costs from the October budget.
Henry Birch, former boss of retailer Very Group, takes the post immediately to replace Graham Stapleton, Halfords’ boss of seven years.
The group said like-for-like sales rose 2.3% in the year to March 28 compared with the previous year, while profit will be at the higher end of previous guidance of £32 million to £37 million.
That is despite making more than £30 million of cost savings across the group in what Mr Stapleton called a “very challenging trading environment”.
New boss Mr Birch cautioned that the current “challenging consumer and economic outlook appears unlikely to subside in the short term”, but added that Halfords is “well-positioned for success in the years ahead”.
Halfords said it has carried out a “comprehensive review” of its business to find ways to mitigate a £23 million rise in labour costs from increases in taxes and the minimum wage, which took effect in April.
This has “generated opportunities in pricing strategy, further buying and cost efficiencies”, it added.
“We expect to be able to mitigate the entirety of the direct inflationary impact of the autumn budget in FY26 (financial year 2026).
“However, retail sales remain volatile and the consumer outlook is uncertain,” the company said.
The group added that while it does not export or import goods to or from the US, the indirect effect of President Donald Trump’s recent trade tariffs “remains to be seen” on its supply chain, product costs, shipping rates and times and on consumer spending.
It said it has “no direct exposure” to the tariffs as it does not export to the US but that it “will continue to adapt our plans and respond tactically to the evolving environment as the year progresses”.
