Halfords Group PLC Reports Stable Sales in Challenging Market

Halfords Group PLC has shared its trading update for the 26 weeks ending 27 September 2024. The "Controlling the controllables" strategy has kept like-for-like sales largely even, at -0.1%, compared to a strong previous year with +8.3%. The company reported a gross margin increase through price optimisation while FX pressures eased.

The Group, composed of Autocentres and Retail segments, faced challenges in the tyre market but benefited from strong services and maintenance revenue. Retail experienced slight declines, particularly in leisure cycling, with a positive response to new premium bicycle offerings.

Halfords made strategic advancements, notably expanding the Fusion town concept and growing its Motoring Loyalty Club to over 4 million members. The Avayler agreement with Bridgestone is set to progress with a pilot launch in the US.

Despite a cautious consumer climate, Halfords remains focused on optimizing its platform amid economic challenges, such as wage inflation.