Halfords upped its first-half profit outlook today as the pandemic-led cycling boom continued to drive sales. However, the group stated that it remained cautious about the second half.
The company now expects its first-half pre-tax profit to be more than £55m, up from the £35m to £40m previously guided.
Group like-for-like sales rose 22% in the five weeks to 25 September, with cycling product sales jumping 46%, helped by improved supply to meet unprecedented demand.
Motoring product sales in its retail business rose 7.5%, while Halfords’ Autocentres garage business delivered sales growth of 18%.
However, Halfords is still less optimistic about the next six months. “The potential impact of second waves of COVID-19 now seems more pronounced than just a few weeks ago, and the economic impact of an end to the furlough scheme and the outcome of Brexit negotiations remains very uncertain,” it said.
“We are well placed to address any headwinds we may face and capitalise on the tailwinds as they arise. Our balance sheet and liquidity position remain strong.”
