Sales of cycle shoving Halfords down

A drop in satellite navigation and bicycle sales during the Christmas phase pushed Halfords shares descending subsequent to the group's warning of complete -year pre-tax profits might be "at the lesser end of the market array".

The leisure and automotive vendor in addition expressed that profits in the concluding quarter of 2010 might be "less than expected".

Cycles generally record for a quarter of Halfords' sales quantity, however like-for-like sales dwindled by 16 per cent during the 13 weeks to December 31, the crest of children's bike sales. Sat-navs sales tariff even inferior, dwindling by 18 per cent year-on-year.

Chief executive, David Wild, expressed that snow had dispirited parents from purchasing outdoor toys, supplementing that sales of premium bikes had in addition been influenced by the pulling out of Cycle-to-Work plan ever since tax rules modified during August.

He further added that they do have a stock hang over on children's bikes, however every signal are depicting that the market's been diving deep for everyone, not only for Halfords.

Mr. Wild supplemented that in general margins were anticipated to be flat in the face of bulk discounting.