Cycling sales surge 57% at Britain's Halfords in lockdown quarter

To get it through the crisis, the group, whose shares have fallen 19% over the last year, has implemented a range of measures to reduce costs and preserve cash, including suspending its dividend, reducing goods-not-for-resale spend and making use of the government’s business rates relief and wage support schemes. For the 2019-20 year Halfords made an underlying pretax profit of 55.9 million pounds ($69.78 million), down 4.9%.

British retailer Halfords said underlying cycling sales surged 57.1% in its latest quarter as people took to bicycles to avoid public transport during the coronavirus lockdown.

As a provider of products deemed essential, Halfords was able to trade through the lockdown period. Group like-for-like sales over the 13 weeks to July 3, its fiscal first quarter, fell 6.5%, with the rampant performance in bicycles more than offset by a 45.4% decline in the higher-margin motoring division due a major reduction in car journeys.

Halfords, which had 359 stores trading as of July 3, said on Tuesday it had withdrawn guidance for the 2020-21 year because of the uncertainty of COVID-19 and remained cautious on the months ahead. To get it through the crisis, the group, whose shares have fallen 19% over the last year, has implemented a range of measures to reduce costs and preserve cash, including suspending its dividend, reducing goods-not-for-resale spend and making use of the government’s business rates relief and wage support schemes.

For the 2019-20 year Halfords made an underlying pretax profit of 55.9 million pounds ($69.78 million), down 4.9%. ($1 = 0.8011 pounds)

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