Halfords Group, the biggest UK retailer of car parts and bicycles, said a drop in sales at stores open at least a year slowed in the fourth quarter as revenue from car maintenance and cycling products increased.
Same-store sales in the 13 weeks ended March 27th fell 3.8 per cent, the Redditch, UK-based company said in a statement today.
Sales on that basis declined 7.8 per cent in the third quarter. Halfords sells one in three bicycles sold in the UK and it's seeking to sell more premium and children's bikes, chief executive officer David Wild said in a conference call.
Britons are buying more bicycles and car-maintenance products in the recession as European car sales dropped for the 11th month in a row in March.
"Cycling should hold up; it's a long-term growth trend driven by health concerns and
anti-congestion measures," said Sam Hart, an analyst with Charles Stanley who has an "accumulate" recommendation on Halfords.
Halfords shares advanced 4 pence, or 1.3 per cent, to 318.25 pence at 10.43am in London.
Bloomberg