Retail giant Halfords has announced its trading performance for the 20-week period to 20 August 2021.
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Given the highly unusual sales patterns in the FY21 comparator period, the firm has compared FY22 revenue to FY20. For completeness, the table below discloses total and LFL growth on both a one-year and two-year basis.
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Total sales grew by +18.7% (+16.8% LFL) over two years, driven by the increased scale of the Autocentres business, notably the Mobile Expert vans taking significant share.
Significantly, the firm’s retail motoring accessories gained share and benefitting from staycation trends.
The firm also reported a significant increase in bike sales in the first half of the period with electric bikes and scooters being particularly strong.
There was also exceptional growth in areas identified as being of strategic importance, with Service-Related Sales up 78%, B2B sales +80% and Online +83%, all on a two year basis.
The firm reports good cash generation in the period; balance sheet remains strong and it continues to target full year profit before tax, post-IFRS 16 adjustments, of above £75m.
Graham Stapleton, Chief Executive Officer, commented:
“The first 20 weeks of FY22 delivered a strong trading performance against a hugely challenging backdrop. Our motoring business now represents 65% of our revenues and continues to go from strength to strength, driven by the increased scale of our Autocentres business, the ongoing demand for our Halfords Mobile Expert Vans, and by recent staycation trends. Although our cycling business is currently impacted by the considerable disruption in the global supply chain, as the UK’s largest cycling retailer we are well positioned to adapt and to serve our customers, and we remain confident in the long-term outlook for the cycling market. The strength of our overall performance is a clear illustration of the relevance of our service-led strategy and gives us the confidence to continue with our investment plans. We remain positive on our prospects for FY22 and beyond.”
| Group financial summary | 1-Year vs. FY21 | 2-Year vs. FY20 | ||
| Total Growth | LFL Growth | Total Growth | LFL Growth | |
| Halfords Group | 10.5% | 10.8% | 18.7% | 16.8% |
| Retail | 3.7% | 7.6% | 7.8% | 17.1% |
| Motoring | 48.2% | 52.1% | 6.5% | 11.2% |
| Cycling | -26.0% | –22.8% | 9.9% | 24.2% |
| Autocentres | 43.8% | 26.0% | 86.2% | 15.5% |
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