Halfords sales drop with milder weather
Like-for-like sales have declined at Redditch-based retailer Halfords in the third quarter and over the Christmas period as milder weather led to a decrease in car maintenance.
However, the group recorded a boost in revenues at its Autocentres, a "strong performance" in children's bike sales and its in-store fitting service WeFit reached record levels.
Total UK and Ireland like-for-like retail revenue fell by 2.9 per cent for the 39 weeks to 30 December compared with last year – and by 4.8 cent for the 13 weeks to the same date.
The mild weather, in comparison with the severe conditions last year, changed the mix of retail sales with a decrease on the car maintenance range, which fell by 7 per cent for the 39 weeks, Halfords said.
Cycling like-for-like revenues increased by 15.1 per cent, boosted by sales of children's bikes and "continuing momentum" in accessories.
Chief executive David Wild said: "The underlying performance of our business is encouraging as we develop Halfords in line with the changing needs of our customers.
"Our expansion in auto after-care is proving very popular. In store our Wefit offer reached record levels as we increasingly fit and attach the parts we sell.
"In Autocentres, at a difficult time for motorists, we are attracting new customers to our brand by offering great value."
Total revenue for the group dipped by 1.1 per cent for the 39-week period, and by 2.1 per cent for the 13 weeks, with retail sales for the UK and Ireland falling by 2.3 per cent for the quarter.
Halfords Autocentres fared better with a 12 per cent increase for the 39 weeks and 18.7 per cent for the 13 weeks.
"Sales increases in Autocentres were driven by new customers attracted to the value offered by the Halfords brand, especially in tyres," the company added.
The WeFit service grew to a record 28.6 per cent from 25.7 per cent last year.
In the quarter, the share buyback programme, which began on 7 April 2011, progressed with a repurchase to date of 16.9m shares for a total consideration of £58.5m. It represents 78 per cent of the £75m targeted buyback. Shares have been purchased at an average price of 346.6p.
Wild said: "The economic outlook remains uncertain, but we are confident that our focus areas create the right platform for future growth."
