Wednesday, May 22, 2019

Halfords sales up 7.7 per cent as bikes drive growth


Car parts and cycling firm Halfords said total retail sales grew 7.7 per cent for the first half of the year as it begins its three year-transformation plan.

Favourable weather boosted the company‘s key cycling category and it has maintained positive momentum against the ‘summer of sport‘ comparatives in Q2.

Its WeFitservice and ‘Getting into Gear‘ programme have also driven growth with the firm launching a new recruitment process and colleague training programme, new website and various store refurbishments.

Matt Davies, Chief Executive, commented: “It is encouraging to see the Retail business deliver a strong first-half performance. In Cycling we were helped by the better weather but made the most of it by ensuring we had the stock and compelling offers to meet demand. We have made a good start on many elements of our Getting Into Gear programme and now have a strong Retail management team in place.”

Online revenues grew by 16.9 per cent and now account for 11.5 per cent of total retail sales. Profit before tax was £44.6m.

Liz Faulkner, consultant at Conlumino, commented: “Car maintenance also continues to perform well, with LFLs at +8.8%. Halfords‘ WeFitservice has been key to driving growth in this category, with a dedicated TV ad promoting awareness of the services, and staff training improving the delivery of it.”

Interim dividend was 5.2 pence per share