Halfords revenues underpinned by 'needs-based' categories

6th Sep 2023 09:11

(Sharecast News) - Retailer Halfords reported a jump in revenues on Wednesday, underpinned by demand for motoring services.

In the 20 weeks to 18 August, total revenue rose 14.1%, driven by "needs-based" categories, with autocentres sales and retail sales up 34.6% and 3.7%, respectively.

Like-for-like revenues were up 7.8%, with autocentres up 16.6% and retail 3.4% higher, despite unfavourable weather throughout Spring and July to August.

Within the retail segment, Halfords said needs-based products and services drove strong motoring LFL sales growth of 7.5%. However, the more discretionary areas of cycling, car cleaning and touring were hit by unfavourable weather and low consumer confidence.

LFL sales in cycling, which now only represents 25% of total revenue, were down 2.7%.

Chief executive Graham Stapleton said: "It's been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our autocentre and retail motoring business. Group motoring, which now accounts for over 75% of our total sales, is a resilient sector and we're progressing with our long-term plans to become a one-stop-shop for motoring ownership."

Halfords said trading has been in line with expectations and full-year underlying pre-tax profit is set to be between £48m and £58m, versus consensus expectations of £51m to £57.7m.