AJ Bell head of markets Dan Coatsworth said: “A summer of sunshine has got people out of the house to enjoy the fresh air and go explore near and far. That’s been music to the ears of Halfords as it has played a key role in helping to support people’s summer activities.
“That ranges from selling bikes and accessories or helping to keep cars on the road with new tyres, oils and fluids, and batteries. It’s clear that Halfords has been a heatwave beneficiary as it upgraded profit expectations.
“Halfords talks about heightened seasonal demand which suggests that bikes could have been flying off the shelves. Getting back on top with the cycling part of its business has been a long time coming, given how Halfords suffered an almighty post-Covid slump for two-wheeled sales.
“The stock has now nearly doubled in price year-to-date as it enjoys positive momentum in the business. Investors should be happy, but they’ll also be watching Halfords’ second half closely.
“The company has flagged that it will accelerate investment in technology and marketing and it will need to prove this extra spending is worthwhile. Investors often fail to recognise the importance of spending money today to make money tomorrow, given widespread short-termism.”
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