Halfords sees earnings at upper end

14th Jan 2010 07:34

Automotive and leisure products retailer Halfords expects earnings for the full year to be towards the upper end of market forecasts but said it remains cautious about the wider economic outlook in the near term.The group said earnings got a boost thanks to operating profit in the last quarter being ahead of management expectations, reflecting strong performances from higher margin product categories, margin enhancing initiatives and continued control of costs. Group revenues in the 39 weeks to 1 January increased by 2.8% with like-for-like sales up by 1.2%. For the 13 weeks period, UK revenues increased by 1.6% with like-for-like sales 0.2% higher than the prior year. However, group revenues in the quarter only increased by 1.0% with like-for-like sales down by 0.4% due to continued economic weakness within Halfords's international markets.'We believe that Halfords brand strength allied to its leading customer offer in attractive markets will deliver sustainable earnings growth,' said chief executive David Wild.'While remaining cautious about the wider economic outlook in the near term and its impact on consumer spending, the board is now confident in delivering full year earnings growth in line with the upper end of market expectations.'