Halfords shares plunge 26% as British shoppers buy bicycles on credit 

Halfords’ cycling and retail motoring divisions were also hit by 'unusually mild but very wet weather' which led to weaker sales in car cleaning and winter products

The retailer said the fall was driven partly by more people wanting to buy bicycles on credit, which was leading to weaker gross margins than expected. 

Halfords shares plunged by 26% at the close of trade after the British retailer issued a profit warning, in part because of more British consumers buying bicycles on credit.

The motoring and cycling retailer said it expected to post profits of between £35m (€41m) and £40m (€46.74m) for the year up to this April, well down on its initial forecast of between £48m (€56m) and £53m (€61.9m).