Halfords sales fall as customers cut back on accessories
Halfords, the car parts and cycle retailer, is expecting its full-year profits to fall by 21% as its customers spend less on car accessories and cleaning products.
In a trading update ahead of it full-year results, the group said it anticipates pre-tax profits for 2011-12 to be between £90 million and £93 million. Group sales are expected to reach £861 million with £751 million coming from its retail operations and £110 million from the group’s Autocentres.
In addition, Halfords revealed that like-for-like sales were down 2.3% in the 13 weeks to 30 March compared with the same period a year earlier.
The group said its online performance had been “disappointing” with weak sales of sat-nav devices and child safety products. It also repeated its prediction that 2012 gross margins would decline by 130 to 150 basis points, while retail operating costs were expected to be marginally below the earlier guidance.
Never Miss a Retail Update!Regarding the outlook for 2013, the group expects the UK consumer environment to remain “challenging”, especially for the motorist.
Chief Executive David Wild said: “The UK consumer outlook for full-year 2013 is uncertain and the continued rise in fuel prices remains a concern.
“Our actions have reduced input-cost inflation, but retailers face a rise in operating costs. While we have historically demonstrated an ability to alleviate these it may be more difficult this year.”
