Halfords raises profit expectations as sales surge

Halfords said that despite the peak cycling and staycation season coming to an end its sales have remained strong since its last trading update earlier this month.

The retailer recorded a 22% surge in group like-for-like sales growth in the five weeks to September 25, bolstered by a 46% spike in cycling like-for-like sales. 

Halfords’ motoring business has also performed strongly during the period with sales up 7.5% in like-for-like terms driven by a 18% jump in like for likes across its autocentres. The retailer says this performance has been buoyed by ‘exceptional demand’ for the retailer’s growing Mobile Expert proposition as customers seek “greater convenience and safety from our fleet of vans”.

Halfords has launched a recruit drive for technicians as a result of the “substantial growth” it has recorded in its motoring business across both retail and autocentres.

Against this backdrop Halfords has said it now expects its half-year profits to be in excess of £55m, up from the range of £35m and £40m forecast earlier this month.

Despite this strong momentum the retailer said it “remains cautious” about its second-half outlook.

“The potential impact of second waves of Covid-19 now seems more pronounced than just a few weeks ago, and the economic impact of an end to the furlough scheme and the outcome of Brexit negotiations remains very uncertain,” said Halfords.

“We are well placed to address any headwinds we may face and capitalise on the tailwinds as they arise. Our balance sheet and liquidity position remain strong.”