Motoring retailer Halfords sees its shares slump 8% despite warm summer weather sending sales up 7.1%
Halfords, which operates 367 stores and 497 consumer garages, expects an underlying pre-tax profit of £55 million to £65 million for the full year.
The sell-off came after the firm warned that extra spending on marketing and technology will tilt profits towards the first half. Shares fell as low as 256p, having more than doubled since chief executive Henry Birch took over in April. Halfords still expects underlying pre-tax profit of £55m to £65m, up from £45m last year. Bikes, camping kit and air conditioning services sold strongly.
Cycling sales rose 8.3% and motoring 7.3%, with autocentres up 6.1%.
IG analyst Chris Beauchamp called it a 'nasty reversal' after a 'blistering rally'.
Despite the fall, the stock remains 85% higher so far this year.
