Car parts-to-bicycles purveyor Halfords (HFD) has enjoyed a robust performance in the 20 weeks to 17 August, despite a challenging retail environment with consumer spending under pressure.
Like-for-like sales rose 2.8% with retail sales increasing 2.6%, driven by fitting services, new workshop and car cleaning products.
Online sales also impressed, jumping 11.3% with the majority of customers choosing to collect in store.
Shares in Halfords rally 7.2% to 352.4p on today's news, yet still trade 10.6% lower than May's one-year high of 388p.
In that month, the shares plunged on a warning profits for the year to 31 March 2019 will be flat as Halfords wasn't confident it could push through price hikes for its bikes.
HEATWAVE AND ELECTRIC BIKES BOOST TRADING
Electric bikes are flying off the shelves with the company dubbing the category its ‘standout performer,’ while cycling parts, accessories and sales continued to grow.
For Halfords, the heatwave appears to have not deterred cyclists keen to enjoy the weather, helping to offset adverse weather at the start of the year and an early Easter.
AJ Bell investment director Russ Mould says Halfords’ latest trading shows some progress by focusing on customer service, staff training and marketing.
While these measures may initially undermine profitability, it may be having a positive impact on the performance of the company’s stores.
