Cycling has been branded Halfords’ “stand-out performer” so far this year, as the company’s bike sales jumped by nine per cent in a promising boost for the UK cycling industry.
As with Shimano for the global cycling market, Halfords, Britain’s largest cycling retailer, can be viewed as a bellwether for the bike industry in the UK, its fortunes a marker for the strength or weakness of the overall industry’s position.
In 2024, for example, the business warned the cycling market is “significantly worse than expected”, and the past few years have been regularly punctuated by stories about Halfords’ falling bike sales and worsening financial performance.
However, after the company reported back in April that sales were up in 2024/25, Halfords’ cycling sector now appears to have turned a corner, and even seems to be driving the company’s optimistic set of financial results for the first half of the current financial year, amid relatively “sluggish” growth in its motoring division.
The retailer’s latest report shows that sales of its cycling products and services have increased by nine per cent year-on-year, with a recorded £208 million in revenue, making about around 23 per cent of the Halford Group’s overall revenue of £893 million.
Overall, factoring in its retail sales, autocentres, bike servicing, and any other parts of the business, Halfords’ sales rose 4.1 per cent compared to the same period last year, leading to a one per cent rise in profit.
According to Halfords, the cycling market consolidated faster than expected in 2024, leading to much higher promotional activity which placed short-term pressure on the company’s gross margin, with the latest figures suggesting a degree of stabilisation.
Meanwhile, Halfords said its motoring products “showed lower rates of growth” in the same period, its autocentres wing seeing like-for-like growth of 3.7 per cent, while retail sales grew by 2.1 per cent.
“I am very pleased to be announcing a strong set of HY26 results that show good financial, strategic and operational progress,” Henry Birch, who was appointed CEO OF Halfords in April, said in a statement.
“Cycling was the stand-out performer, with LFL sales up 9 per cent. Our consumer garages also performed particularly well, up around 8 per cent, driven in part by the ongoing roll-out of our new format Fusion garages.”
He continued: “Looking ahead, there are significant opportunities for us to create further value through improvements in our technology and data capability, which are key areas of focus for us as we plan for the future.
“While the operating environment remains unpredictable, our combination of needs-based products and services, as well as market-leading positions in both motoring and cycling, gives us the confidence that we will continue to grow our business in line with our plans.”
As well as Birch’s appointment as CEO, another change in Halfords’ management sees Sarah Haywood, formerly of Carlsberg, appointed as CIO. Meanwhile, it was announced that Kenneth Williams will step down after nine years as chair by next September.
Overall, Halfords reported in its latest statement an underlying pre-tax profit of £21.2 million for the six months ending 26 September, and said it is confident in delivering a pre-tax profit at the end of the financial year of between £36 million and £40.7 million, in line with the market consensus.
However, despite the promising report, especially in its cycling sector, Halfords’ shares fell by 2.23 per cent on Thursday, an indicator AJ Bell says of a focus on the retailer’s slower motoring performance, rather than its bike sales.
“Much attention around Halfords has focused on its auto services, parts and accessories operations rather than the cycling business,” Russ Mould, investment director at AJ Bell, said in a statement on Halfords’ finances today.
“However, the company’s first-half results are pedal powered with an eye-catching 9 per cent increase in like-for-like sales. Investors have been here before and may not be getting carried away as cycling performance tends to fluctuate significantly.
“While cycling sales may be flying like Laura Kenny in the velodrome, supported by warm weather over the summer and autumn, they could just as easily resemble an amateur with a slow puncture next time around. That’s potentially why the market is focusing instead on the more sluggish showing on the motoring side, which has increasingly become Halfords’ bread and butter.
“The company is looking to lean on an improvement in its digital platforms as it looks to navigate a difficult road ahead amid continuing pressures on consumer spending. At least by pursuing these improvements and keeping a lid on costs, Halfords is managing the elements it can control.”
5 thoughts on “Cycling Halfords’ “stand-out performer” as bike sales jump 9%, making up almost a quarter of retailer’s revenue”
That’s because I bought an
That’s because I bought an inner tube from them.
I like their £1 reflective
I like their £1 reflective slapband. They don’t last too long though. I tend to buy a few.
I grab some whenever there!
I grab some whenever there! When not on me they live on the bikes so they’re always at work.
Given how many local bike
Given how many local bike shops are closing, that’s quite a surprise. But then maybe people have no other option than Halfords now?
You beat me to it, with too
You beat me to it, with too many a LBS falling foul of the internet local choice may be limited to Halfords or nobody.