8th Sep 2020 09:57
(Alliance News) - Halfords Group PLC on Tuesday said a boom in cycling sales and a staycation trend resulted in a strong trading performance for the 20-week period to August 21, which coincided with the most significant impact of the Covid-19 pandemic in the UK.
The bike and car parts retailer also guided underlying pretax profit for the first half to end of September of between GBP35 million and GBP40 million, up as much as 54% from GBP25.9 million recorded a year ago.
Halfords, however, warned that second half profit could be significantly lower than the first half, given the natural fall-off in the relative strength of cycling and staycation products during winter months alongside a difficult economic outlook.
For the 20-week period to August 21, Halfords recorded group annual revenue growth of 7.5%, with like-for-like sales growth of 5.0%.
The retail division - which includes bike sales - saw a 7.0% rise in like-for-like sales from a year before, with total revenue increasing 3.8%. Cycling revenue surged 59% on a like-for-like basis during the 20-week period
Autocentres, the company's car parts unit, suffered a 7.6% fall in like-for-like sales amid lockdowns across the UK.
Chief Executive Officer Graham Stapleton said: "We are pleased to have delivered a strong trading performance during the period.
"We have been able to move quickly in order to capitalise on the continued strong demand for cycling products, with sales of electric bikes and scooters up 230% year-on-year, while cycling services have been boosted by our free 32-point bike check and the government's Fix your Bike Voucher scheme. We have also seen a return to growth in our motoring business, driven by an increase in car journeys and by a high level of demand for staycation-related products such as roof bars and roof boxes."
Halfords said it remains cautious on the outlook for the remainder of financial 2021, but is confident in the long-term strategy and growth prospects.
Shares in the company were down 1.5% at 181.20 pence each in London on Tuesday morning. The stock is up 7.0% since the start of 2020.
By Tapan Panchal; [email protected]
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