UK retailer Halfords sees bicycle sales surge 59% during crisis


Adds details

LONDON, Sept 8 (Reuters) - British retailer Halfords HFD.L said on Tuesday underlying sales of cycling goods surged 59.1% in the 20 weeks to Aug. 21, as people continued to shy away from public transport during the coronavirus pandemic.

It said group like-for-like sales rose 5.0%, with the strong performance in cycling partially offset by a 28.6% fall in motoring products sales, with car journeys limited by the crisis.

Assuming expected demand levels in September and stability in the relative value of the U.S. dollar, first-half underlying pretax profit was forecast to be 35-40 million pounds ($46-53 million).

Halfords cautioned that "significant uncertainty" remained for the second half of its 2020-21 year.

"Given the natural fall-off in the relative strength of cycling and staycation products during winter months, alongside a difficult economic outlook, H2 FY21 profit before tax could be significantly lower than H1 FY21," it said.

Halfords highlighted sales of electric bikes and scooters, up 230% year-on-year, and a strong performance in overall online sales, up 160%.

Shares in the group, up 9% so far this year, closed Monday at 184 pence, valuing the business at 370 million pounds.

($1 = 0.7607 pounds)

(Reporting by James Davey, editing by Louise Heavens and David Evans)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.