Halfords trims profit forecast amid summer sales slowdown

Halfords like-for-like sales declined 3.2% for the 20 weeks to August 16. Retail like-for-like sales were down 3.9% however its autocentre sales registered a slight uptick of 1.2% during the same period.

The cycling and car parts retailer suffered a 3.2% decline in like-for-like sales during the 20 weeks to August 16. Retail like-for-like sales were down 3.9%, but its autocentre sales registered a slight uptick of 1.2% on a same-store basis during the period.

Total revenues dropped 3.9%, with retail sales falling 4.8%.

As a result, Halfords trimmed its profit guidance for the full-year. It said it now expects underlying pre-tax profit to fall “within the range of £50m to £55m”, down from its its previous guidance £58.8m.

Halfords boss Graham Stapleton attributed to sales declines to the impact of “cooler, wetter weather and weaker consumer confidence”.

He added: “Despite sales growth in group services, online and B2B, we have seen our overall sales impacted by cooler, wetter weather and weaker consumer confidence year on year.

“The market has been challenging but we are pleased to have seen increased market share in our core categories.

“In the second half, we believe the economic and political uncertainty will continue to impact big-ticket discretionary spend and, therefore, as in the first half, we will continue to focus on improving gross margins and controlling costs.

“We set out a new strategy for the business last year and while it is still early, we have already seen encouraging signs of progress. We remain confident that it is the right strategy to drive the sustainable growth of the business.”