Halfords Group PLC Trading Statement (7768X)
September 02 2015 - 1:00AM
UK Regulatory
TIDMHFD
RNS Number : 7768X
Halfords Group PLC
02 September 2015
Halfords Group plc
Trading Update
Halfords Group plc ("the Group"), the UK's leading retailer of
automotive and leisure products and services and a leading
independent operator in garage servicing and auto repair, today
updates the market on its trading performance for the 8-week period
4 July 2015 to 28 August 2015 (also referred to as "Q2 to
date").
Following the first quarter trading update issued on 15 July,
Cycling sales in Q2 to date have decreased against tough
comparatives and, as such, are expected to be below current market
expectations for the quarter. Trading in all other categories
remains robust.
The table below presents the Retail like-for-like (LfL) revenue
performance:
LIKE-for-LIKE (LfL) REVENUE FY16 Q2 to date FY16 Q1 FY15 H1
% change (8 weeks) (13 weeks) (26 weeks)
-------------------------------- ----------------- ------------- -------------
Retail -1.3 +3.5 +6.8
-------------------------------- ----------------- ------------- -------------
Cycling -11.0 +2.0 +16.0
-------------------------------- ----------------- ------------- -------------
Car Maintenance +7.3 +5.9 +3.7
-------------------------------- ----------------- ------------- -------------
Car Enhancement +4.7 -0.3 -1.4
-------------------------------- ----------------- ------------- -------------
Travel Solutions +1.8 +9.2 +3.9
-------------------------------- ----------------- ------------- -------------
The disappointing Cycling performance was primarily driven by
mainstream bikes, as well as associated parts and accessories. We
consider this to be principally market-driven, reflecting greater
levels of discounting as well as poor weather deterring casual
cyclists. Cycle Repair LfL growth remained strong at +27.6%.
As we exit the peak season for mainstream bikes we will launch a
complete refresh of children's bikes and accessories alongside a
series of compelling offers for customers, underpinned by continued
product and service training for colleagues. Looking further ahead,
we have an exciting pipeline of innovation for bikes and
accessories and we remain confident in the medium and long-term
growth opportunities in the cycling market.
Trading in all other areas of Halfords Retail remains strong and
in line with, or above, expectations, particularly Car Maintenance
where Parts was a standout performer. Customer service metrics
continue to improve. Actions in Autocentres continue to drive
profitable growth.
Financial outlook
For the first half, management anticipates Retail gross margin
to be at the better end of the previous full year guidance range
(-25 to -75 basis points year-on-year decline) and Retail operating
cost growth of circa 3% (previous full year guidance: 4 to 5%).
Through mix benefits in margin and prudent cost control in line
with the first half, management anticipates full year Group profit
before tax to be broadly in line with prevailing market
consensus.
Jill McDonald, Chief Executive, commented:
"In my first three months at Halfords I have reviewed all
aspects of the Group and it is clear to me that Halfords is a
strong business with a well-balanced portfolio of product and
service categories, talented colleagues and considerable growth
potential. This recent weakness in our Cycling sales is
disappointing, but it comes after two years of very strong growth
in the category and has been partly offset by strong growth in both
Car Maintenance and Car Enhancement sales, which is a testament to
the balanced nature of the business."
"Looking ahead, we remain confident in the long-term growth
opportunities in Cycling and I will talk more about our plans for
Cycling and across the broader Group at our interim results in
November."
Halfords will report its interim results, for the period ending
2 October 2015, and second-quarter trading performance on 12
November 2015, together with a strategy update.
Enquiries
Halfords +44 (0) 1527 513 113
Andrew Findlay, Chief Financial Officer
Adam Phillips, Head of Investor Relations
Maitland (Media) +44 (0) 207 379 5151
Neil Bennett
Andy Donald
Conference Call
There will be a conference call for investors and sell-side
analysts at 8.15am today.
Halfords Group plc
Halfords is the UK's leading retailer of automotive, cycling and
leisure products and, through Halfords Autocentres, also one of the
UK's leading independent car servicing and repair operators.
Halfords customers shop at 470 stores in the UK and Republic of
Ireland, including seven Halfords 'Cycle Republic' shops, and at
halfords.com for pick-up at their local store or direct home
delivery. Halfords Autocentres operates from 306 sites nationally
and offers motorists dealership-quality MOTs, repairs and car
servicing at affordable prices.
Cautionary Statement
This report is based on information from unaudited management
accounts and contains certain forward-looking statements with
respect to the financial condition, results of operations, and
businesses of Halfords Group plc. These statements and forecasts
involve risk, uncertainty and assumptions because they relate to
events and depend upon circumstances that will occur in the future.
There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied
by these forward-looking statements. These forward-looking
statements are made only as at the date of this announcement.
Nothing in this announcement should be construed as a profit
forecast. Except as required by law, Halfords Group plc has no
obligation to update the forward-looking statements or to correct
any inaccuracies therein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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