Halfords shares rose 11.56% to 268.85 pence on Thursday, reaching their highest level since late March 2022 and sharply outperforming the flat FTSE 250. The British motoring and cycling retailer raised its FY27 underlying profit-before-tax forecast to £55 million to £65 million, above market consensus of £52.6 million and its consensus range of £48.9 million to £55.1 million. The upgrade reflects stronger-than-expected trading, momentum in the company’s underlying businesses and unusually warm summer weather, which Halfords expects to add mid-single-digit millions of pounds to profit. The company is seeking to develop a more resilient, service-led earnings model through its Fit for the Future strategy. FY27 earnings are expected to be weighted more heavily toward the first half, while technology and marketing spending is planned to increase in the second half to support longer-term growth. The forecast upgrade follows a strong FY26, when like-for-like sales rose 4.8%, underlying profit before tax reached £45.4 million, gross margin expanded by 210 basis points and free cash flow was £25.3 million. Halfords ended that year with £19.1 million of reported net cash and joined the FTSE 250 on August 4.