Halfords’ shares in the fast lane on sales lift - Business - Evening Standard
       

Halfords’ shares in the fast lane on sales lift

Shares in Halfords rocketed 7% today after the bikes and car-parts retailer posted an upbeat trading update that sent analysts scurrying to hike profit forecasts.

The 470-branch chain's second-quarter sales rose 2.2% on a like-for-like basis. Chief executive David Wild said half-year profit will be around £60 million, a fifth higher than the same time last year.

Brokers rushed to raise estimates for Halfords' full-year profit. Analysts at Mayfair-based Killik put it at £104 million.

Wild explained that trading was up as the leisure sector's "sales momentum" had continued. He said: "The domestic holiday trend meant we had a great summer from camping, and bikes have also done very well.

"Cycling fits all the contemporary trends — health, sustainability, economy — and the British Olympic success spurred interest in bikes. It will be even higher when the Olympics come to London."

Wild said he hoped Halfords' "we fit" service, where staff install customers' sat nav, lightbulbs and wiper purchases for a fee, will help it ward off Amazon, which today launched a car and motorbike-parts shop on its website.

The shares rose 27p to 390¾p.

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