The beginning of the summer season is expected to push pre-tax profits at Halfords up by 8.4% to £78.9m, analysts predict. The profit increase is anticipated following the bicycle retailer’s recent overhaul of its stores and improved cycle ranges.
The bicycle and car-parts retailer is set to reveal its full-year results on Friday, the first under its new CEO Jill McDonald. Halfords is predicted to unveil a 6% increase in annual sales, especially in its bicycle division.
McDonald joined the company earlier this year, replacing Matt Davies who left to join Tesco. She is expected to commit to the retailers strategy to boost sales and profits by largely focusing on its cycling business and increase the number of staff in stores to improve customer service.
The British retailer also plans to open its fifth bike-only branch Cycle Republic which carries brands by former stars of the sport Olympic gold medallist Victoria Pendleton and Chris Boardman. The young firm is keen to boost female participation in cycling and has pledged to introduce and increase its range of women-friendly bikes, accessories and clothing at Cycle Republic. While it is estimated by Analysts at Deutsche Bank that the young division will add £200m to the group’s sales, Halfords is also likely to report a continued demand for its car enhancement products such as gear knobs and car air fresheners.
It is anticipated that investors will also be keen for an update on the group’s search for a new Finance Chief later this year, after Andrew Millard resigned in March for the same job at budget airline Easyjet.