Halfords raises first half profit forecast
Halfords has said it expects its first half pre-tax profit to come in ahead of expectations at over £55 million compared to the £35 million to £40 million it predicted last month.
Despite the peak cycling and staycation season coming to an end, the retailer saw its group like-for-like sales increase by 22% in the five weeks to 25 September. The cycling category performed particularly well with like-for-like sales rising by 46% in the period. Like-for-like retail sales in the motoring category also increased, rising by 7.5%
Meanwhile, Halfords’ autocentres business continued to grow with like-for-like sales up 18%.
Despite the sales uplifts, Halfords said it is remaining cautious on the outlook for its second half.
It added: “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. 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.”
