RE: Better & better for Halfords. Results 7th July >>>28 Jun 2020 08:54
Where we might get a better outcome than expected is in the reduction of costs. So although sales as of end of April down 23%, with no rates to pay for 12 months and furloughed staff, the actual profits might well offset that lower revenue. The chancellor has to do something to fire up spending, so a general cut in VAT may follow which would help all retail, in conjunction there might well be cuts in employers NI as well. Access to cheap money might also help. Car fuel might increase but that will only benefit Halfords as a cheaper place to have your car serviced and also might convert more to bikes. And also with cheap money it makes a potential buy more rather than less likely.
I am expecting a surprise in the profits to the upside in July.