Strong Q1 Sales At Halfords Group Plc
Halfords (LSE: HFD) today released its first-quarter interim management statement for FY14, which covers the 13-week period up to 28th June 2013.
It showed that overall group revenues are up a decent 8.8%, with the retail arm posting a gain of 9%. This is particularly impressive when you consider it outperformed like-for-like retail revenue by 8.8%.
Cycling again proved to be a key revenue driver for the group, as it saw cycle repairs increase by just over 32%. It also released a broader range of parts, accessories and clothing for sale online. Cycling products were actually responsible for over half of online revenues, for which Halfords saw a total increase of nearly 16%.
In terms of what it's known for best, the group saw the sale of car parts rise by almost 17%. This could be attributed to the new "Wefit" fitting proposition launched, where customers can have an array of products -- for example batteries, headlight bulbs and wiper blades -- fitted to their cars for a small fee.
The Autocentre arm of the business also saw a rise in revenue of nearly 8%, which is actually down nearly a whole percentage point compared to last year. However, it reported continued expansion in this area with the news that seven new centres opened within this 13-week period, which is in line with expectations.
Chief executive Matt Davies commented:
"Our Retail performance reflected better trading execution in areas of opportunity whilst we were up against a weak comparative period. Autocentres LfL sales reflected an adverse fleet performance but we continued to expand our network as planned."
If a company that shows good growth potential is important you, then I urge you to download our exclusive FREE report, "The Motley Fool's Top Growth Share For 2013". Contained within is one company that the Motley Fool's superstar analyst team have identified as a must-have for any solid growth portfolio. Click here to download it now.
