Halfords sales skid lower as cycling loses grip in wet weather

Like-for-like sales skidded lower at Halfords in the first quarter as the timing of Easter and dreary weather exacerbated the recent cycling decline.

Group revenue in the 13-week period to 1 July increased 2.1%, as retail rose 1.5% and Autocentres climbed 5.9%.

But group like-for-like sales dipped 0.6%, with a 1.2% fall from retail outweiging a 3.1% gain from Autocentres.

Within retail, cycling sales were down 4% and motoring up 0.4%.

However, adjusting for the timing of Easter, LFL revenue was flat, with retail down 0.2% and Autocentres up 1.7%.

Chief executive Jill McDonald said there had been "good" sales growth of premium bikes but cycling had been not only hit by the timing of Easter but also the poor weather, particularly in April, which has been blamed by many other retailers.

"We look forward to the peak summer cycling season, including our exciting new ranges from Laura Trott and Sir Bradley Wiggins launched ahead of the Olympics," she added.

"While the recent decision to leave the EU does create uncertainty, we are well-positioned as a business and focused on delivering sustainable long-term growth."

In June, the group outlined a net impact of £3m on profit for the full year at a sterling-dollar rate of 1.45.

Halfords now had more than 75% of FY17 purchases hedged at around 1.45, though if the rate stays below 1.45 "it may have a small further impact later in this financial year, depending on the extent to which it can be mitigated".