(Reuters) -British motoring and cycling parts retailer Halfords trimmed its annual profit outlook on Thursday, weighed down by a softer-than-expected demand in cycling and tyre markets on the back of a cost-of-living crisis.
Businesses are battling inflationary pressures and tepid demand as soaring prices of everything from energy to food are forcing British consumers to curtail non-essential spending as they try to make ends meet.
The company, which also sells used car parts, flagged a slump in demand for more big-ticket items in its retail unit that sells bikes, e-bikes and e-scooters, cycles among others.
Halfords said its higher margin sales will be impacted in the fourth quarter as the retailer failed to recruit enough skilled technicians at its auto-centres business amid a tight labour market.
The company, which had earlier softened its outlook in November and saw an annual profit at the bottom range of its previous forecast of 65 million pounds ($78.90 million) to 75 million pounds, reported total revenue growth of 21.7% for the 13-week period ended Dec.31, 2022.
The London-listed retailer now expects its full-year underlying profit before tax to be between 50 million and 60 million pounds.
($1 = 0.8239 pounds)
(Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips)
