By Scott Kanowsky
Investing.com -- Shares in Halfords Group PLC (LON:HFD) slumped by more than 21% on Thursday, after the British cycling retailer warned "significant" cost inflation is having a negative impact on its financial performance.
The company added that it cannot forecast earnings for 2023 with "any degree of certainty," adding that the near-term outlook remains difficult due to an uptick in prices and a drop in demand for "higher ticket items."
"While rising inflation and declining consumer confidence will naturally present short-term challenges for any customer-facing business like ours, we remain confident in Halfords’ long-term growth prospects due to our service-led strategy and the enduring strength of our brand, people, products and services,” said Halfords chief executive Graham Stapleton in a statement.
In its preliminary full-year results, the group reported a 49.8% year-on-year rise in pre-tax profit, up to £96.6M. Revenue also increased by 6% to £1.37B.