(Adds detail)
LONDON, July 7 (Reuters) - British retailer Halfords
said underlying cycling sales surged 57.1% in its latest quarter
as people took to bicycles to avoid public transport during the
coronavirus lockdown.
As a provider of products deemed essential, Halfords
was able to trade through the lockdown period.
Group like-for-like sales over the 13 weeks to July 3, its
fiscal first quarter, fell 6.5%, with the rampant performance in
bicycles more than offset by a 45.4% decline in the
higher-margin motoring division due a major reduction in car
journeys.
Halfords, which had 359 stores trading as of July 3, said on
Tuesday it had withdrawn guidance for the 2020-21 year because
of the uncertainty of COVID-19 and remained cautious on the
months ahead.
To get it through the crisis, the group, whose shares have
fallen 19% over the last year, has implemented a range of
measures to reduce costs and preserve cash, including suspending
its dividend, reducing goods-not-for-resale spend and making use
of the government’s business rates relief and wage support
schemes.
For the 2019-20 year Halfords made an underlying pretax
profit of 55.9 million pounds ($69.78 million), down 4.9%.
($1 = 0.8011 pounds)
(Reporting by James Davey; editing by Kate Holton and Louise
Heavens)