14th Jul 2016 06:42
LONDON (Alliance News) - Halfords Group PLC on Thursday reported growth in total revenue in the first quarter of its financial year, but a fall in like-for-likes as the cycling division continued to struggle, and it warned that a weak pound could harm its results for the full year.
The car parts and bicycle retailer said total group revenue in the 13 weeks ended July 1 grew by 2.1% year-on-year, with retail revenue up 1.5% and autocentres revenue up 5.9%.
On a like-for-like basis, however, revenue slipped by 0.6%, as 3.1% growth in autocentres failed to offset a 1.2% decline in retail. Halfords said this was due to falling sat nav sales in the car enhancement division, while cycling sales were hit by the earlier timing of Easter and poor weather in April and late June.
Autocentres revenue was boosted by sales of tyres, longer opening hours, and growth in online sales, marking its 11th consecutive quarter of like-for-like growth in that area of the business.
Halfords said it has over three-quarters of its financial 2017 purchases hedged, but if sterling continues to weaken against the dollar, that may hit results later in the year. It had already stated last month that weakness in sterling would hit full-year profit by GBP3 million.
"We look forward to the peak summer cycling season, including our exciting new ranges from Laura Trott and Sir Bradley Wiggins launched ahead of the Olympics. While the recent decision to leave the EU does create uncertainty, we are well-positioned as a business and focused on delivering sustainable long-term growth," Chief Executive Jill McDonald said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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