Halfords sales get leisure boost

Halfords today said the hot spring weather sparked a boom in demand for bikes and travel goods, giving it a boost after a challenging year when sales came under pressure.

The chain, which has 464 stores in the UK and Ireland, said like-for-like sales were up 0.8% in the nine weeks to June 3, driven by an 11.1% rise in leisure items, such as those in its revamped cycling range.

However, this was partly offset by continuing declines in sales of its car maintenance and enhancement products.

The company today reported a 7.7% rise in pre-tax profits to £118.1m (€132.7m) in the year to April 1 despite a 5.5% fall in like-for-like sales after it made cost savings and increased its margins.

It also said its Autocentres business, which runs 242 car repair centres, had performed slightly worse than its initial expectations. The business, which it bought from Nationwide Autocentres in February 2010, made operating profits of £7m (€7.8m).

But although it was pleased by the group’s recent sales performance, it warned that the tough trading conditions are likely to continue, as consumers spending power is squeezed.