21st Jan 2015 08:07
LONDON (Alliance News) - Bikes-to-car parts retailer Halfords Group PLC Wednesday said growth in its third quarter was driven by sales of car maintenance products and bikes, especially children's bikes bought as Christmas presents.
The retail chain said like-for-like sales, which are sales from stores open more than a year, were up 6.7% in its 15-week third quarter to January 9, on the back of retail sales growth of 6.8% and an improved sales growth performance from its Autocentres, up 5.9%.
Total revenue for the group in the quarter was up 6.5%, as was growth from its retail and autocentres divisions.
"We are delighted to report strong third quarter sales, demonstrating our ability to continue to drive top-line growth. The standout performer this quarter was Car Maintenance, with our service-led 'wefit' offer again achieving record levels of Parts fitting, along with an excellent Parts sales performance, particularly in car batteries," said Chief Executive Matt Davies in a statement.
Davies said Autocentres' sales improved in the quarter, while cycling sales also continued to be strong, particularly children's bikes, which saw sales grow almost 14%. Davies said a bike remains a "popular Christmas present".
In the year to date, Halfords said like-for-like sales are up 6.6%, with retail up 6.9% and autocentres up 4.9%. The stand-out performer so far this year has been bike sales.
The group said it now expects its full-year retail gross margin to be in the "better half" of the guided year-on-year range, down between 25 and 75 basis points, with full-year retail operating costs at the higher end of the 5% to 6% guidance.
"Investment in our omni-channel proposition helped online sales grow to record levels, driven by Click & Collect," said Davies.
Halfords said it "refreshed" a further nine stores in the quarter, putting it on track for between 70 to 75 refreshes by the end of the year.
Halfords shares were up 2.7% at 452.33 pence at the market open Wednesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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