Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Halfords Christmas sales slump as customers hit the brakes

(Sharecast News) - UK car parts and bike retailer Halfords on Thursday reported weaker-than-expected third-quarter sales, driven by a poor Christmas as customers reined in discretionary spending amid the cost-of-living crisis. December like-for-like (LFL) sales slumped more than 15%, although the start of the fourth quarter returned to growth, the company said in a trading update.

"Whilst October and November sales were strong, sales in December were much weaker, driven by a combination of mild and wet weather impacting demand for winter products and footfall into stores, and customers balancing difficult spending decisions in the lead up to Christmas," the company said.

Its retail motoring division saw average LFL growth of 10.2% in October and November before the December decline.

"In January, we have seen sales growth in Retail Motoring return to the levels seen in October and November as conditions normalised," Halfords said.

Group revenue rose 2% on a like-for-like basis in the three months to December, with stronger sales in motoring and needs-based categories partly offset by weaker spend in discretionary areas.

The full-year profit forecast was maintained as it implemented more cost-saving measures and saw continued momentum in its motoring services unit.

Halfords expects its adjusted pre-tax profit for calendar 2023 of £48m - £53m.

"Whilst Q3 sales were below expectations, a strong start to Q4 trading, further cost action and resilient areas such as B2B performing well, mean that we are confident in the Q4 outlook," the company said.

Reporting by Frank Prenesti for

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.