Share Search
Visit the Share Search
Halfords warns on H2 profits as bike sales set to decelerate
8th Sep 2020 07:48
(Sharecast News) - Halfords reported soaring sales of cycling goods and car roof boxes as Britons avoided public transport during the coronavirus pandemic, but warned of lower second-half profits as winter approached.
The car parts-to-bike group on Tuesday said underlying sales of cycling goods motored by 59.1% in the 20 weeks to August 21.
Group like-for-like sales rose 5%, held back by a 28.6% fall in motoring products sales with fewer people travelling by car during the crisis, although there had been a return to growth after the easing of lockdown measures.
First-half underlying pre-tax profit was forecast to be £35m - £40m, based on expected September sales, although the company warned that there was still "significant uncertainty" over its second-half outlook.
"Given the natural fall-off in the relative strength of cycling and staycation products during winter months, alongside a difficult economic outlook, full year 2021 profit before tax could be significantly lower than first-half full year 2021," it said.
Sales of electric bikes and scooters soared 230% year-on-year, reflecting changing travel habits while online sales were up 160%, marking another Covid-related shopping trend.
"We have also seen a return to growth in our motoring business, driven by an increase in car journeys and by a high level of demand for staycation-related products such as roof bars and roof boxes," Halfords said.
The car parts-to-bike group on Tuesday said underlying sales of cycling goods motored by 59.1% in the 20 weeks to August 21.
Group like-for-like sales rose 5%, held back by a 28.6% fall in motoring products sales with fewer people travelling by car during the crisis, although there had been a return to growth after the easing of lockdown measures.
First-half underlying pre-tax profit was forecast to be £35m - £40m, based on expected September sales, although the company warned that there was still "significant uncertainty" over its second-half outlook.
"Given the natural fall-off in the relative strength of cycling and staycation products during winter months, alongside a difficult economic outlook, full year 2021 profit before tax could be significantly lower than first-half full year 2021," it said.
Sales of electric bikes and scooters soared 230% year-on-year, reflecting changing travel habits while online sales were up 160%, marking another Covid-related shopping trend.
"We have also seen a return to growth in our motoring business, driven by an increase in car journeys and by a high level of demand for staycation-related products such as roof bars and roof boxes," Halfords said.