StockMarketWire.com - Motoring and cycling products group Halfords lifted its outlook on first-half profit but warned of 'significantly lower' profit in the second half amid easing demand for cycling and staycations products during winter months.

Following better-than-expected in the seven weeks since the first quarter, the company said it now expected, assuming expected levels of trading in September, underlying first-half profit in the range of £35-40m, but warned 'significant uncertainty' remained for the second half of FY21.

'Given the natural fall-off in the relative strength of cycling and staycation products during winter months, alongside a difficult economic outlook, H2 FY21 PBT could be significantly lower than H1 FY21,' Halfords said.

The company also reported a rise in sales in the 20-week period to 21 August as the pandemic-led cycling demand boosted sales.

For the 20-week period to 21 August 2020, revenue was up 7.5% and 5.0% on a like-for-like basis.

Cycling LFL revenue was up +59.1% in the period, with 'strong growth across all product categories and up 76% in our performance cycling business, Tredz,' the company said.





Story provided by StockMarketWire.com