Category-killing motor accessories retailer Halfords posted strong sales growth last year in its pre-close update.
Turnover rose 7.2 per cent in the 52 weeks to March 28, when comparable store sales advanced 4.2 per cent.
Halfords said the sales rise, combined with effective cost control, meant that full-year profits will meet market expectations.
Core areas such as car maintenance and cycling notched up the strongest growth.
In the seven weeks to March 14, which exclude the distorting effect of Easter, sales growth was 6.2 per cent, or 3.2 per cent like-for-like, providing “further evidence of the resilient nature of the company’s trading”, Halfords said.
Kaupthing analyst Matthew McEachran said: “30 to 40 per cent of sales come from defensive categories, namely car maintenance. Given an above-average margin these products generate as much as 45 per cent of the gross profit base. Sales in these areas have picked up and are running above the average rate of like-for-like growth - possibly around 6 to 7 per cent. This clearly a big plus.”
Halfords said the sales rise, combined with effective cost control, meant that full-year profits will meet market expectations.
Core areas such as car maintenance and cycling notched up the strongest growth.
In the seven weeks to March 14, which exclude the distorting effect of Easter, sales growth was 6.2 per cent, or 3.2 per cent like-for-like, providing “further evidence of the resilient nature of the company’s trading”, Halfords said.
Kaupthing analyst Matthew McEachran said: “30 to 40 per cent of sales come from defensive categories, namely car maintenance. Given an above-average margin these products generate as much as 45 per cent of the gross profit base. Sales in these areas have picked up and are running above the average rate of like-for-like growth - possibly around 6 to 7 per cent. This clearly a big plus.”
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