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UK retailer Halfords posts lower annual profit
Global Banking & Finance Review®
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(Reuters) -British bicycle and car products retailer Halfords Group reported a fall in annual profit on Thursday as footfall across its stores declined due to challenging market conditions and wet weather.
(Reuters) -British bicycle and car products retailer Halfords Group reported a fall in annual profit on Thursday as footfall across its stores declined due to challenging market conditions and wet weather.
The prolonged cost-of-living crisis has forced Britons to cut spending on discretionary spending, particularly big-ticket purchases like electric bikes and satellite navigation systems.
“Elevated cost inflation continued to be a significant headwind, increasing the cost base by approximately 37 million pounds in fiscal 2024,” the company said in a statement.
In February, Halfords said it was seeing “very challenging and exceptional short-term market conditions” and was cautious about a recovery.
Underlying pre-tax profit from total operations came in at 36.1 million pounds ($45.62 million) for the year ended March 29, compared with 44.2 million pounds it logged in the previous year.
Analysts on average were expecting the firm to clock a profit of about 36.2 million pounds, according to a company-compiled consensus.
($1 = 0.7913 pounds)
(Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu)
Annual profit refers to the total earnings of a company over a fiscal year after all expenses, taxes, and costs have been deducted from total revenue.
Cost inflation is the increase in the prices of goods and services, which can lead to higher operational costs for businesses and affect their profit margins.
Discretionary spending refers to non-essential expenses that consumers choose to spend on, such as luxury items or entertainment, rather than on necessary goods and services.
Underlying pre-tax profit is a measure of a company's profitability that excludes certain items like taxes and one-time gains or losses, providing a clearer view of operational performance.
Big-ticket purchases are expensive items that require a significant financial commitment, such as cars, appliances, or electronics, often financed through loans or credit.
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