Halfords suffers but SuperGroup soars as weak pound plays havoc on High Street

A tale of contrasting fortunes on British high streets emerged today as the pound’s plunge pummelled Halfords’ first-half profits but boosted fashion chain SuperGroup.

Halfords reported a more-than-12% drop in underlying pre-tax profit to £40.8 million in the six months to September 30, sending its shares 12.6p lower to 331.1p.

Boss Jill McDonald said the pound’s fall since the Brexit vote, along with heavier promotions and investment in training, hit margins.

Currency will be a “significant” risk but suppliers are “helping out” and raising prices would be a last resort, McDonald added. Brexit may also provide a boost if more people choose a “staycation” and pick up camping supplies or roof racks from Halfords.

Same-store sales rose 2.2%, with cycling up 4.6%, and Halfords said it would meet full-year profit forecasts.

Peel Hunt analysts were unconvinced, however, saying: “Halfords is not sufficiently innovative or proactive and is allowing the situation where it is not master of its own destiny to persist.”

SuperGroup’s first-half figures were better received: its shares rose 128p, or 8.8%, to 1570p after it revealed a 13% rise in same-store sales. The weak pound provided a third of the growth in each of its operating divisions, it said.

SuperGroup, parent of the Superdry brand, said it is better protected than most because of its geographical spread.

Half its revenues are earned in euros and it only buys half its goods in dollars. It will keep prices unchanged as a result, the firm’s chief executive Euan Sutherland said.

But it warned its first-half profit margin would suffer as it sold more through wholesale, a more expensive route to customers.