Halfords sales flat in H1 as consumers remain cautious
The group warns the short-term outlook remains uncertain, particularly for big ticket, discretionary purchases
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Halfords has reported broadly flat revenues in the first half of FY25, with group sales down by 0.1% as consumers were “cautious” with their spending over the period. According to the group, this was compounded by ongoing uncertainty ahead of this year’s Autumn Budget.
In the 26 weeks ended 27 September 2024, retail like-for-like sales were down by 0.7%, in part due to the UK experiencing its wettest spring since 1986, according to Halfords.
While motoring products were “more resilient than expected”, leisure cycling remained “challenging” over the period, though Halfords’ new premium bike ranges were said to be well received. Performance cycling continued to outperform with positive like-for-like sales in Tredz.
Autocentres meanwhile delivered a like-for-like sales growth of 0.8% against an “exceptionally strong” 18% rise in H1 FY24.
While there was strong growth in services, maintenance and repair, tyres remained challenging with “price-conscious customers trading down into budget ranges” and more promotional activity in the premium market.
Looking ahead, the group said it was on track to deliver £30m of targeted full-year savings to mitigate around £35m of expected inflation.
It added that the short-term outlook remains uncertain, particularly for big ticket, discretionary purchases, despite “pockets of improving consumer sentiment”. Nonetheless, its FY25 remains unchanged.
Graham Stapleton, CEO of Halfords, said: “While consumers remain cautious in their discretionary spending compounded by uncertainty around the contents of the upcoming Autumn Budget, we have continued to focus on controlling the controllables and I am pleased with our performance in the first half of FY25.
“Our services and B2B-led strategy has supported Halfords’ growth despite two of our core markets remaining significantly below pre-Covid levels, enabling us to absorb more than £130m of inflation since FY20 while maintaining a strong balance sheet.”
He added: “In this environment we are focused on optimising the existing platform to drive near-term returns, while accelerating our investment in the Fusion concept to position us for growth in the coming years.”
