Halfords enjoys strong trading despite fall in cycling sales
Halfords has reported an increase in sales during the first period of the financial year, however performance in its cycling division saw a decline.
In its trading update for the 20 weeks to 18 August 2023, group sales were up 14.1% compared to the same period last year, and were ahead by 7.8% on a like-for-like basis.
Halfords’ Autocentres sales saw an increase of 34.6% and like-for-like growth of 16.6% during the period, whilst Halfords’ retail division recorded an increase in sales of 3.7%, up 3.4% on a like-for-like basis.
Within the company’s retail division, motoring sales grew by 7.7% during the period, an increase of 7.5% like-for-like. However cycling sales fell by 1.7% and decreased by 2.7% on a like-for-like basis.
Halfords said the more “discretionary” areas of cycling, car cleaning and touring were adversely impacted by unfavourable weather and low consumer confidence. Cycling now only represents 25% of Halfords total revenue.
The retailer said its trading in the year-to-date had been in line with expectations, with its full year pre-tax profit expected to be between £48m and £58m.
Graham Stapleton, Halfords chief executive officer, said: “It’s been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our autocentre and retail motoring business. Group motoring, which now accounts for over 75% of our total sales, is a resilient sector and we’re progressing with our long-term plans to become a one-stop-shop for motoring ownership.”