Halfords revenues rise as consumers sniff out budget auto care
Halfords reported a 14.1 per cent hike in revenue for the first five months of the year as the retailer was bolstered by demand for “basic needs” services such as motoring.
The motoring and cycling retailer said that revenue in its autocentres division grew 34.6 per cent and retail rose 3.7 per cent.
Halfords has invested in keeping prices low for consumers amidst the cost of living crisis – including launching its ‘keep Motoring for less’ campaign and price reductions across motoring goods.
However, earnings in its cycling arm were down slightly by 1.7 per cent as the London-listed firm said it was impacted by unfavourable weather and low consumer confidence.
The company said it’s trading remains in line with expectations and is poised to post between £48m and £58m of profit before tax for the year.
It is a more positive update than the group’s annual results published earlier this summer.
In June, Halfords reported a £38.3m drop in annual profits as the group was hit by a decline in consumer demand following its lockdown boom and a tough economic climate.
“It’s been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our autocentre and retail motoring business,” Graham Stapleton, chief executive officer, said.
“Group motoring, which now accounts for over 75 per cent of our total sales, is a resilient sector and we’re progressing with our long-term plans to become a one-stop-shop for motoring ownership.”