Halfords (LON:HFD) profits for the year took a hit as a result of pound weakness despite a strong sales performance.
The retailer said pre-tax profits fell 10.5 p to £71.4 million for the year to March.
Revenue was up 7.2 percent to almost £1.1 billion, benefited by its acquisition of Tredz/Wheelies. In addition, like-for-like revenues were up 2.7 percent.
Halfords revealed that as a result of the devaluation of the pound since June, cost related inflation cost the company around £14 million.
Company chief executive Jill McDonald, who is set to leave at the end of October, said of the results:
“I am pleased with the performance this year, with sales growth across all areas of our business and market share gains in both motoring and cycling. Profit performance for the year was impacted by the weaker pound but our plans are well developed and I am confident this will be offset over time.”
Moreover, McDonald stressed that in spite of the adverse effect of currency fluctuations on profits, its “underlying business performance is strong” and that it remained committed to confronting upcoming challenges during the year, as the company enters a “challenging period… with uncertainty over consumer spending”.
This echoed Thursday’s Office of National Statistics (ONS) figures which revealed a slowdown in the economy, as higher living costs and inflation had led to streamlined consumer spending and a slowdown for the retail sector as a whole.
Earlier this month CEO Ms McDonald announced that she is set to join Marks & Spencer (LON:MKS) to head its struggling clothing business. On Wednesday, the company posted a disappointing update with profits falling some 64 percent, largely due to a lack of demand for its clothing.
Halfords group shares are currently up 2.42 percent as of 13.37PM (GMT).