Halfords revenues boosted by autocentres business
Cycle and car accessories retailer Halfords saw its total revenue increase by 1.6% in the 15 weeks to 11 January following a strong performance from its autocentres business.
Total retail revenue rose by 0.1% in the period while revenue at autocentres increased by 12.4%. On a like-for-like basis, retail sales rose by 0.4% with autocentre sales up by 5.6%.
The retailer said that sales of its cycles fell by 1.6%. Although initially weak, sales improved in the final weeks of the period, and were partially offset by a strong increase in Premium Cycle and Cycle Repairs sales.
Car maintenance like-for-like sales rose by 6.1% boosted by a 13.2% increase in part sales although mild and wet-weather conditions affected the demand for winter products.
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Matt Davies, chief executive, commented: “We are pleased with the growth achieved in all of the service-led Retail opportunities we had prioritised for increased investment, particularly Car Maintenance.
“Cycling sales initially disappointed but performed more strongly as the holiday period progressed and we were particularly pleased that momentum has been maintained in sales of Premium Cycles.
“Autocentres revenue continues to grow as we focused investment on the new-centre opening programme, capacity for future growth and motorists’ awareness of the brand.”
The retailer, which has 460 stores in the UK and Ireland, said it had upgraded its full-year profit guidance although it does not anticipate a material improvement in short-term trading conditions.
In a statement Halfords said: “Given the Retail revenue performance in the period our plans would indicate group profit before tax for the year ended 29 March 2013 in the range of £68-72 million, a modest upgrade to our prior assumptions.”
