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Commercial Property News
Halfords struggles to raise earnings as Q1 LFL sales slip 1.9%
Halfords Group plc, in its Q1 Interim Management Statement for the period from 3 April to 26 July 2010, said it's LFL sales are down 1.9% overall, though within that core areas of car maintenance and cycling improved and satellite navigation sales fell.
The new National Distribution Centre commenced operations in the period and when fully on-stream in September will reduce annual costs by £4million per annum. Halfords is now focussed on cost cutting and margin improvement as the way to deliver it's bottom line goal of a pre-tax profit of £135-137 million.
David Wild, Chief Executive Officer, commented:
"The resilience of the Halfords business model is confirmed by further like-for-like growth in our core categories despite the consumer headwinds experienced across the retail sector. Our focus remains on managing the controllable elements of the business. Actions taken to manage gross margins, reduce costs and increase efficiency, are delivering the benefits we expected. The integration of Nationwide is continuing well and I remain pleased with early performance and progress.
We are cautious about the macro economic environment but, through the execution of our proven strategy, we remain on track to deliver full year earnings growth in line with previous guidance"
The new National Distribution Centre commenced operations in the period and when fully on-stream in September will reduce annual costs by £4million per annum. Halfords is now focussed on cost cutting and margin improvement as the way to deliver it's bottom line goal of a pre-tax profit of £135-137 million.
David Wild, Chief Executive Officer, commented:
"The resilience of the Halfords business model is confirmed by further like-for-like growth in our core categories despite the consumer headwinds experienced across the retail sector. Our focus remains on managing the controllable elements of the business. Actions taken to manage gross margins, reduce costs and increase efficiency, are delivering the benefits we expected. The integration of Nationwide is continuing well and I remain pleased with early performance and progress.
We are cautious about the macro economic environment but, through the execution of our proven strategy, we remain on track to deliver full year earnings growth in line with previous guidance"
Tue, 27th Jul 2010