Poor weather helps to puncture Halfords’ cycling performance
INCLEMENT weather has been given as one of the reasons that Halfords’ cycling division performed so poorly over the last two months.
The Redditch-based retailer of automotive and leisure products saw its revenue from cycling dip by 11%, on a like-for-like basis, over the last eight weeks. This led to retail revenue overall slipping by 1.3%.
“The disappointing cycling performance was primarily driven by mainstream bikes, as well as associated parts and accessories,” the firm said in a statement to the London Stock Exchange this morning.
“We consider this to be principally market-driven, reflecting greater levels of discounting as well as poor weather deterring casual cyclists.”
Halfords said cycling sales in Q2 to date have decreased against tough comparatives and, as such, are expected to be below current market expectations for the quarter.
Cycle repair growth remained strong at +27.6%.
Good news for the firm also came from car maintenance (up 7.3%) and car enhancement (+4.7%).
Halfords said it is planning to launch a complete refresh of children’s bikes and accessories alongside a series of “compelling offers for customers, underpinned by continued product and service training for colleagues”.
It added: “Looking further ahead, we have an exciting pipeline of innovation for bikes and accessories and we remain confident in the medium and long-term growth opportunities in the cycling market.
“Trading in all other areas of Halfords Retail remains strong and in line with, or above, expectations, particularly car maintenance where parts was a standout performer. Customer service metrics continue to improve. Actions in Autocentres continue to drive profitable growth.”
Chief executive Jill McDonald said: “In my first three months at Halfords I have reviewed all aspects of the group and it is clear to me that Halfords is a strong business with a well-balanced portfolio of product and service categories, talented colleagues and considerable growth potential.
“This recent weakness in our cycling sales is disappointing, but it comes after two years of very strong growth in the category and has been partly offset by strong growth in both car maintenance and car enhancement sales, which is a testament to the balanced nature of the business.
“Looking ahead, we remain confident in the long-term growth opportunities in cycling and I will talk more about our plans for cycling and across the broader group at our interim results in November.”
