Halfords Group plc, the UK’s leading retailer of cycling and leisure products, reported Cycling sales increase 16 percent in the 26 weeks ended Sept. 26, reflecting the continuing roll out of its new Cycle Republic retail concept and the £14.0 million acquisition of Boardman Bikes.
Same-store Cycling sales grew 11.3 percent in the second quarter, down sharply from the 21.3 percent reported in the first quarter. Travel Solutions, which sells rooftop racks and other car camping gear, posted same-store sales growth of 3.6 percent in the second quarter compared with 4.2 percent in the first quarter.
The company, which is also the UK’s leading retailer of automotive products and a leading independent operator in garage servicing and auto repair, reported ($880 mm), up 6.6 percent from the first half of 2013. Retail sales growth slowed to 5.5 percent in the second quarter from 7.7 percent in the first quarter. Comparable stores sales rose 6.8 percent and online retail sales grew 13.7 percent. Retail gross margin declined 65 basis points to 50.6 percent at its retail operations. Group EBITDA, which also includes its chain of auto service garages, grew 6.7 percent to £63.6 million ($107 mm), before non-recurring costs, unless otherwise stated. Profit before taxes after non-recurring items reached £49.6 million ($83 mm), up 11.2 percent.
“This was a strong performance against particularly tough comparatives and we are pleased overall with the progress we are making under our Getting Into Gear Retail plan,” said CEO Matt Davies. A strengthened Cycling offer was underpinned by the acquisition of Boardman Bikes whilst Halfords continued to build its Auto credentials with the launch of Car Parts Direct. More Retail colleagues completed their Gear-2 training, the supply-chain and IT infrastructure improved further and refreshed stores performed in line with expectations. Autocentres delivered an improved sales performance, with new management focused on the motorist experience. I look forward to a second half where we will continue to position Halfords to deliver sustainable profit growth.”
