Halfords has announced a 2.8% rise in like-for-like revenues, with like-for-like motoring sales rising 3.8% and like-for-like cycling sales rising 0.8%, in the 20 weeks to 17 August 2018.
Laith Khalaf, Senior Analyst, Hargreaves Lansdown: “Achieving 3% sales growth in today’s environment is a decent result by any high street retailer’s standards, but profits are expected to stall at Halfords this year thanks to a weak pound and investment in customer services.
“Motoring has overtaken cycling in terms of growth, and that’s positive for Halfords as that’s where the company makes the lion’s share of its profits. Declining car sales are actually a tailwind for Halfords, as more older models on the road means a greater need for parts and servicing.
“New CEO Graham Stapleton will update the market on strategy later in September, though we see no need to reinvent the wheel. In a retail market increasingly disrupted by online competitors, investing in personal services looks like the right approach. Upskilling the workforce will cost money in the short term, but should allow Halfords to carve itself a sustainable niche in the digital world.”