Could Halfords be the next retailer to issue a disappointing trading update, following HMV and Games Workshop this morning.
Analyst Nick Bubb at Arden Partners thinks it's entirely possible. He says:
If HMV had to come forward from the 13th with their trading news, who else may have to go early and warn on profits? Well, what about Halfords? The shares rallied pre-Xmas on hopes that the snow would be good for de-icer sales and car maintenance, but the IR put around an email yesterday warning that third quarter sales decline forecasts should allow perhaps 1% more for snow disruption! The logic appears to be that many of the stores are out of town and couldn't be reached because of the snow and ice and that consumers were put off buying kids bikes and sat navs for Xmas…which has a ring of truth to it. Our target price is 420p, so the shares look a bit vulnerable short-term…
Halfords is currently down 12.4p at 442.2p.
