Halfords revenue rises in golden quarter thanks to “strong demand”

Halfords Graham Stapleton

Halfords has seen its revenue cycle ahead during the third quarter after recording a stable sales performance.

The cycling and automotive retailer’s revenue increased by 4.6 per cent in the 14 weeks to January 3, with a 0.6 per cent rise in retail and a 31.2 per cent rise in autocentres.

Halfords now maintains that full-year profits will be between £50 million and £55 million.

Although retail motoring like -for-likes were down 2.7 per cent during the quarter, Halfords said this was an improvement on the first half.

Meanwhile, online sales jumped 27 per cent across the 14 weeks, while service-related revenues, which now account for 27 per cent of Halfords’ group sales, grew 16 per cent.

The retailer said its initiative to “optimise the cycling space” in its stores and create “more innovative and differentiated” ranges had progressed during the period.

“Our results reflect the positive actions we have taken across the group to deliver on our strategy, particularly motoring services, which grew strongly,” Halfords chief executive Graham Stapleton said.

“Within retail, cycling performed particularly well, as customers responded to our innovative product ranges and differentiated proposition.

“Approximately 85 per cent of our bike range is unique to Halfords, including our successful partnership with Disney and the development of an innovative range with Trunki, both of which helped to sell a record number of kids bikes in the period.

“In addition, our ability to provide customers with a unique, free, build and storage offer was met with strong demand, as we built 86,000 bikes in the week before Christmas.

“Market conditions remained subdued and we are not anticipating a near-term improvement. We will continue to focus on improving our customer proposition, building our services business and managing our costs and operations tightly.”