16th Jan 2014 08:40
LONDON (Alliance News) - Halfords Group PLC said Thursday that total revenue for the 15 weeks to January 10 2014 increased 6.6%, with like-for-like revenue growth up 5.2%, as the company reported record growth in online retail sales.
Revenue was up 7.3% for the 41-week period to January 10 2014 while Like-for-like revenue growth was 5.9%.
Halfords' Retail division recorded a 6.2% rise in revenue for the 15 weeks, while Autocentres' revenue was boosted by 9.2%. For the 41 weeks to the same date, Retail and Autocentre revenues were up 7.3% and 7.5%, respectively.
The automotive and leisure products retailer said like for-for-like revenue in its Retail division for the 15 week period was boosted by growth in its cycling, car maintenance and travel solutions business lines, up 19.5%, 2.4%, and 1.7%, respectively.
The story was similar for the 41 weeks period, with revenues up 16.1%, 6.6%, and 2.3%, respectively, for the same divisions.
The car enhancements business was the only retail sector to report a drop in revenue, down 4.0% for the 15 week period, and down 0.9% for the 41 weeks, however Halfords said that revenues in the division had improved year-on-year.
On a like-for-like basis, Autocentre revenue was up 0.1% for the 15 week period, and down 1.4% for the 41 weeks to January 10. During the period the company opened four new centres.
Looking at specific parts of the business, Halfords said its Cycling line saw significant growth across the board, including and "excellent" performance from accessories and children's bikes. Car Maintenance saw strong sales of Workshop tools partially offset by subdued demand for parts and winter products, said the company. Fitting of parts reached record levels despite the mild weather conditions, it added, and Car Cleaning performance was outweighed by an increased decline in Sat Nav devices.
Online sales grew 13.8%, said Halfords, with online sales representing a record 11.7% of total Retail sales.
Supported by continued growth in its retail and autocentre divisions, the firm said there has been no material change in the group's financial position, which remains sound.
Matt Davies, Chief Executive, said, "Our Retail top-line performance was robust in a period of comparatively mild weather. Cycling was again the standout performer, with our customers engaged by refreshed ranges, supported by a renewed customer-first promotional stance. Within Car Maintenance, despite a fall in demand for winter products and low growth in auto-parts sales, we undertook record levels of 3Bs fitting activity. Getting Into Gear is progressing well and our key indicators are moving in the right direction. During the period we refurbished a further 12 stores and successfully relaunched Halfords.com."
The company has also appointed a new Managing Director of Autocentres, Andy Randall. Halfords said Randall will lead the business through the next phase of its journey and will be in place for the start of the new financial year.
Halfords said its expectations and all guidance for the full-year remains unchanged, despite noting that, "the mix of sales during the period towards cycling will have adversely influenced the Retail gross-margin performance."
Shares in the automotive retailer were trading up 7.35% at 495 pence per share Thursday morning, leading the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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