A surge in demand for bikes during the pandemic is set to provide a major boost to Halfords as it unveils its performance over the past year.
Analysts have predicted that soaring bike sales have buoyed the retailer during the lockdown period, with suggestions that its motoring division could also be on the road to recovery.
On Tuesday July 7, the stalwart motoring accessories and bike retailer will tell investors how it traded over the past year to June, although there will be particular focus on its performance throughout the lockdown period.
Many bike retailers have reported that they can’t get hold of fresh stock, particularly in more affordable price ranges.
In May, the group revealed trading was ahead of expectations in the four weeks to the start of May, as sales fell 23% on a like-for-like basis against the same period last year.
Halfords was particularly strengthened by high demand for bikes and parts, with the Bicycle Association trade body noting a 50% surge in bike sales in April.
As more people return to work and Government guidance continues to suggest that people avoid public transport, the company’s motoring division is expected to recover in the coming months.
Nicholas Hyett, equity analyst at Hargreaves Landsdown, said he believes Halfords’ mix of autocentres, cycle retail and online investment “make it better suited to compete in a digital first world than most retailers”.
“However, sales are only one half of the equation and our real focus at these results will be cost control and cash conservation,” he added.
“A large leasehold retail estate and accompanying staff costs mean some costs are unavoidable.
“But if the group can keep exceptional costs associated with moving to a socially distanced operating set up to a minimum it will have done well.”
