Cycling craze lifts Halfords

HALFORDS shares raced more than 30pc higher as booming bicycle sales prompted the company to raise its profits forecasts.

a summer cycling craze triggered by the coronavirus lockdown continued into september, the retailer said, turbocharging sales. It means the firm is expecting halfyear profits ‘in excess’ of £55m, compared to £27.5m in 2019. Halfords said like-for-like sales had increased by 22pc in the five weeks to september 25, including a 46pc rise in cycling products.

the firm has benefited from massive demand for bikes and cycling products during the pandemic, with many families taking ‘staycations’ and trying outdoor activities instead of going abroad.

It is thought the sustained demand is being partly fuelled by those choosing to cycle to work rather than taking public transport. Halfords had already revealed a sales surge over the summer but previously warned the peak cycling season was set to end – so its declaration that the bonanza has actually continued caught investors by surprise. shares soared 31.5pc.

sales at its motoring retail business were also up by 7.5pc for the five-week period, while sales at its autocentre servicing business had grown by 18pc.

Halfords has launched a national campaign to recruit hundreds of skilled technicians as a result of the ‘substantial growth’ seen in its stores and autocentres. But despite the strong performance, the company told investors it is braced for potential disruption in the second half of the year if more virus restrictions are announced.