Halfords Group PLC (LSE:HFD) reported strong current trading and repeated its full-year profit guidance, but said its cycling business has been hit by global supply chain constraints.
The bikes and car parts company said total sales in the first 20 weeks of full year 2022 grew 18.7% compared with the same period of the pre-pandemic full-year 2020, and were up 16.8% like-for-like, boosted by strong sales in its motoring and autocentres operations.
Total retail sales increased 7.8% on a two-year basis with like-for-like sales 17.1% higher.
Motoring grew 6.5%, or 11.2% like-for-like over two years, on the back of increased market share and staycation trends. Touring in particular benefitted from staycation, with sales rising 53.3%.
Cycling sales were 9.9% higher compared with FY 2020 and like-for-like sales grew 24.2%. Halfords said continuing capacity constraints in the global cycling supply chain led to low availability of bikes throughout the period, especially in the Adult Mechanical category, which contributed to materially lower growth rates towards the end of the 20-week period to 20 August.
The autocentres business achieved total revenue growth of 86.2% and like-for-like growth 15.5% on a two-year basis, driven by increased scale, improved utilisation and focus on B2B. However, the supply of technicians to garages and Halfords Mobile Expert Vans was hit by recruitment challenges and Covid-related absences, which impacted sales, the group said.
Its cash generation is good and the balance sheet remains strong, Halfords said as it reiterated its full-year guidance for a pre-tax profit above £75mln.
Commenting on current trading, chief executive Graham Stapleton said: "The first 20 weeks of FY22 delivered a strong trading performance against a hugely challenging backdrop.
“Although our cycling business is currently impacted by the considerable disruption in the global supply chain, as the UK's largest cycling retailer we are well positioned to adapt and to serve our customers, and we remain confident in the long-term outlook for the cycling market.
“The strength of our overall performance is a clear illustration of the relevance of our service-led strategy and gives us the confidence to continue with our investment plans. We remain positive on our prospects for FY22 and beyond."