LONDON (Reuters) - Car parts and bike retailer Halfords said on Wednesday first-quarter profit was ahead of its expectations, boosted by a strong performance from its car maintenance business and tight cost control.
The firm, which runs about 450 stores selling spark plugs, car navigation systems and bicycles, said sales at shops open more than a year rose 0.2 percent in the 13 weeks to June 27, adjusted for the timing of Easter.
"Whilst not immune to the ongoing challenging retail environment, our market-leading positions, extensive ranges and unique service proposition continue to provide us with confidence in delivering full-year earnings in line with our expectations," it said in a trading update.
Many of Britain's retailers are struggling amid signs that shoppers are cutting back on spending due to higher food, fuel and borrowing costs.
But Halfords's main markets are viewed as relatively resistant to a downturn, and its shares have outperformed the UK general retail index by 36 percent this year.
Analysts expect the firm to report profit before tax and one-off items of 92.5 million pounds for the year to March 2009, up from 90.2 million the year before, according to the median forecast of 17 analysts polled by Reuters Estimates.
Halfords shares closed at 276.5 pence on Tuesday, valuing the business at about 578 million pounds.
Source: http://uk.biz.yahoo.com/23072008/325/halfords-says-profit-ahead-its-expectations.html
