Halfords has upgraded its FY27 underlying pre-tax profit guidance ahead of market consensus, following a boost from "unusually warm summer weather".

Halfords now expects FY27 underlying profit before tax to be between £55m and £65m, ahead of current consensus of £52.6m, putting even the bottom end of the new profit range above most previous forecasts.

The motoring and cycling retailer said it had continued to outperform since its FY26 results, with particularly strong demand in seasonal categories. Halfords estimated the favourable weather had generated incremental profit in the mid-single-digit millions of pounds, although it said the underlying business was also showing strong momentum.

"Halfords has continued to outperform over recent months," the company stated in a trading update to the LSE today.

"This reflects momentum in the underlying business as we continue to deliver against our strategic priorities alongside a very strong performance in seasonal categories, in part reflecting unusually warm summer weather. We estimate that this heightened seasonal demand has resulted in incremental profit in the mid-single digit millions of pounds," it added.

The Worcestershire-based small-cap company, which has annual revenue of roughly £1.7bn-1.8bn, said the improved performance would be weighted towards the first half as it plans to increase technology and marketing investment in the second half.

Halfords shares rose around 10%-11% to approximately £2.66-£2.69, making the stock one of the stronger performers on the London market.

The company will hold its AGM on 10 September, with its HY27 trading update due on 21 October.

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