Morning:
22°c
Shareholder anger over executive pay boiled over when investors holding a hefty 42% of the stock refused to back Tesco's decision to make its share option plan even more generous
More...
Sales grow as Halfords defies downward cycle
Simon English23.07.08
Bicycles-to-car repair group Halfords is still motoring despite the slump in the economy that has engulfed most of the rest of the High Street.
It managed to push sales up 1.7% in the 13 weeks to 27 June, with profits ahead of company expectations.
Analysts say Halfords remains a good bet in troubled times because those looking to tighten belts will still want to keep their mode of transport in good nick.
With the holiday season in full swing, Halfords is benefiting from the switch away from foreign holidays. As Britons choose to holiday at home in growing numbers, they are buying add-ons to their cars, such as CD players, in record numbers.
Acting managing director Nick Wharton said: "This is an encouraging start to the financial year which underlines Halfords' resilient and defensive proposition." incoming chief executive David Wild starts on 4 August, with a brief to continue growing the business.
He joins from Wal-Mart, having previously worked at Tesco for 18 years. Halfords plans to open another 15 to 20 stores in the UK this year. The shares are down from a year high of 408p but have fared much better than the retail sector in general. Today they added 7p to 283½p.
Like-for-like sales, which strip out new stores and new product lines, edged up 0.2%, which sounds meagre but is far better than almost all other nonfood retailers.
Morgan Stanley said: "Halfords has performed resiliently. This is a reassuring statement. Most other hardline retailers would love to have this level of like-for-like sales at this moment."
Wharton concedes that the group is "not immune to the ongoing challenging retail environment" but says it has few direct competitors.
It employs more than 10,000 people selling everything from car-roof boxes to camping gear.
