8th Sep 2021 09:39
(Alliance News) - Halfords Group PLC on Wednesday reported sales growth underpinned by a strong trading performance but cautioned that significant supply chain constraints were impacting the business.
The retailer, best known for selling bikes and cycling equipment, posted sales growth of 11% year-on-year for the 20-week period ended August 20, and a rise of 19% compared to two years ago. Growth in Retail Motoring and Retail Cycling were listed as factors behind the improvement.
The company reasserted its full-year pretax profit target of over GBP75 million.
However, the firm did warn of ongoing supply-side challenges, including factory production constraints and raw material inflation. Freight disruption and recruitment difficulties in respect of HGV drivers were also listed as problems.
Halfords joins a number of other firms experiencing recent supply challenges including Nando's, McDonald's Corp and JD Wetherspoon PLC.
Halfords shares were 2.6% lower at 342.36 pence in London on Wednesday morning following the announcement.
"The first 20 weeks of financial year 2022 delivered a strong trading performance against a hugely challenging backdrop," commented Chief Executive Graham Stapleton.
"Although our cycling business is currently impacted by the considerable disruption in the global supply chain, as the UK's largest cycling retailer we are well positioned to adapt and to serve our customers, and we remain confident in the long-term outlook for the cycling market. We remain positive on our prospects for financial year 2022 and beyond," he added.
By Will Paige; [email protected]
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