Halfords’ sales lifted by the Wiggins’ effect

Hours after unveiling a new chief executive in former Pets At Home boss Matt Davies, the company revealed a 4.6 per cent increase in retail sales in the 13-week period to September 28, compared to a 7.5 per cent drop in the first quarter.

The rebound was driven by a 14.7 per cent surge in cycling sales, which the business put down to better weather and the British success in the Tour de France and Olympics from the likes of Bradley Wiggins, Sir Chris Hoy and Lizzie Armitstead.

Halfords said it expected pre-tax profits for the first half of the year to be £40m to £42m, nearly 20 per cent higher than City forecasts, while full year profits are expected to be at the top end of previous guidance of £66m to £70m.

Within cycling, the chain saw strong sales of its Boardman and Pendleton ranges, named after British Olympic gold medallists Chris and Victoria respectively.

The better-than-expected performance will be a positive welcome for Mr Davies, who took up the top post yesterday following a tough period for the Redditch-based group.

He replaces David Wild who quit in July following a profit warning and a sharp sales decline, as record rainfall hit sales of cycles and outdoor goods.

The chain, which has 467 stores in the UK and Ireland, reported a 2.7 per cent rise in car maintenance revenues, although car enhancement sales fell 1.5 per cent, as fewer satnavs were sold.

Halfords Autocentres, which provide MOT and car servicing, saw a 12.4 per cent rise in sales in the second quarter, compared to a 9.2 per cent increase in the first three months.

This was the strongest like-for-like performance since the chain was acquired in February 2010, the group said, and was driven by better-than-expected take-up of its tyre services.

Chairman Dennis Millard said the group had recovered some ground lost in the spring.

Mr Davies – chief executive of Pets At Home for eight years – will be paid a £500,000 salary and is entitled to a potential £750,000 annual bonus, with up to a further £750,000 in long-term incentive shares from next August.