Halfords updates outlook as profits and sales surge

The retailer’s profit before tax rose by 91.7% compared to pre-pandemic levels to reach £57.9m in the 26 weeks to October 1. Revenues also rose 19.2% compared to the same period in 2019, with sales in the retail division growing by 7.7% to reach £538.7m. 

Halfords also reported an increased market share in its autocentre division, with sales increasing by 88%  in the period to reach £156.1m.

 The retailer’s cycling division was heavily impacted by supply chain challenges in the period, with the retailer noting that availability “deteriorated” during the first half of its financial year. Halfords noted that the disruption is now beginning to ease, with the retailer hopeful for Christmas trading.

 As a result, Halford upgraded its full year underlying profit before tax forecast to between £80m to £90m. Previous guidance stood just above £75m.

 The company will also double its number of trained electric technicians in its next financial year to 4,000 as sales of e-bikes and e-scooters jumped 140% on pre-pandemic levels, while services for electric cars across Halfords garages spiked 120% year-on-year.

The retailer recently unveiled a new customer service focused concept connecting its store and garage locations in Colchester, Essex over the summer. “It’s the entire town that’s been re-positioned to optimise customer experience,” chief executive officer Graham Stapleton told Retail Week. ”We’ve seen very encouraging results and sales. We are hoping for a double digit improvement.”

Halfords will now expand this offering and provide a similar experience to its customers in Halifax in the coming weeks.

Stapleton also noted that interest in Christmas categories has already surpassed pre-pandemic levels at this point in the year, with children’s bicycles, electric bicycles, car cleaning gift sets, as well as dash cams and satnavs among the items being purchased at a faster rate.

Stapleton said: “We are delighted to have delivered a strong H1 performance, driven by market share gains in motoring products, garages and our mobile services business, which now account for more than two thirds of our revenue. We also continued to see a significant contribution from areas of strategic focus, with revenue from group services, online and B2B, all growing by more than 75% on a two-year basis.

 “In cycling, demand levels remain good, and we are pleased with the current availability of kids bikes and e-bikes as we head into the Christmas trading period. We have carried good sales momentum into H2 across our business, supported by the easing of supply chain disruption.”