THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Halfords CEO steps down as sales slump

Halfords has confirmed that its chief executive David Wild has stepped down following a fall in first quarter sales.

GENERAL MERCHANDISE

Halfords CEO steps down as sales slump

The bike and car parts retailer said that like-for-like sales dropped 5.6% in the 13 weeks to 29 June. Total revenue for the group was down 5.2% year-on-year despite a good performance from the retailer’s recently acquired Autocentres business  which saw a 9.2% rise in like-for-like sales.

Halfords said it expects like-for-like sales to be negative, or at best flat, for the rest of the financial year. In addition, it indicated that profits are likely to be in the range of £62 million to £70 million compared to market expectations of £75 million.

The group said sales of cycles had suffered due to the wet weather with revenues down by 9.6% in the period. Although its car maintenance business saw like-for-like sales increase by 1% on a year earlier, like-for-like sales in its car enhancement and leisure divisions both fell by 10.5%.

Halfords had a weak start to the quarter with like-for-like sales down 12.4% in the first 8 weeks of the period, but trading improved in the five weeks to 29 June when like-for-like sales rose 0.9%. Online revenues in the quarter were up 13% from a year earlier as a new fulfilment proposition enhanced the retailer’s multi-channel offer .

In separate statement Halfords said that non-executive chairman Dennis Millard would take up the role of interim executive chairman until a replacement for Wild could be found.

Commenting on the results, Millard said: "The consumer environment remains difficult and the unseasonal weather conditions this quarter had a direct impact on sales of cycles and outdoor leisure products. In this challenging economic environment the management team will be focused on maximising our trading performance and cash generation, prudent cost management and delivering the longer term strategy outlined to shareholders in May 2012."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing