HALFORDS will this week insist the so-called “Wiggins effect” is keeping the business on track despite a likely double-digit slide in profits.
The retail stalwart previously said it expects pre-tax profits for the half year to come in at just over £40 million, which would equate to a year-on-year fall of about a fifth.
But the earnings are still above what City analysts had expected earlier this year when the chain, which has 467 stores, was struggling with falling sales.
Thanks to the Olympics, it saw trade bounce back in the second quarter of its financial year, following a plunge in the opening three months.
The rebound was driven by a surge in cycling sales, which the business put down to better weather and British success in the Tour de France and Olympics from the likes of Bradley Wiggins, Sir Chris Hoy and Lizzie Armitstead.
Wednesday’s results will be the first since the new chief executive, former Pets At Home boss Matt Davies, joined, although he is not expected to present them. Davies replaced David Wild, who quit in July following a profit warning and a sharp sales decline.
Kate Calvert, an analyst at Seymour Pierce, said: “We believe a back-to-basics approach is needed to restore profitability. We do not believe Halfords is suffering from structural issues. It is suffering from maturity, a tired offer and operational inefficiencies.”
The City will be keen to see if Halfords Autocentres, which provides MoT and car servicing, continued its strong run.