Halfords defies retail gloom to post profit rise
HALFORDS shook off the gloom hanging over the UK retail sector yesterday to announce a 7.2 per cent rise in pre-tax profit in the past year.
Customers bought more car parts and fitted them at Halfords stores as they cut back on expensive services or new vehicle purchases, chief executive David Wild told City A.M.
The firm also saw a surge in demand for bicycles and camping gear since January as customers adjusted to a long-term expectation of spending less on their lifestyles.
“Customers are realising this is not a short term situation, of just needing to get through the next six months – this is the new reality,” Wild said.
“They don’t want to be miserable, so they are buying more innovative products and looking for bargains.”
Revenues rose 4.6 per cent to £869.7m and underlying pre-tax profit rose to £125.6m while it changed the appearance of its stores, acquired a chain of autocentre garages and wielded the axe on costs.
Sales in its leisure arm jumped 11.1 per cent in the nine weeks from 1 April due to the hot weather and extra holidays.
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