Halfords chief executive resigns after profits warning

By PETER RANSCOMBE AND HOLLY WILLIAMS
Published on 19/07/2012 12:11

David Wild, the chief executive at bicycle and car parts retailer Halfords, has resigned after a hefty slide in sales triggered a profits warning.

Wild, who has been in charge for four years, resigned with immediate effect after like-for-like retail sales dropped 7.5 per cent in the 13 weeks to 29 June as the soggy weather impacted sales of cycles and outdoor goods.

The group said it expected sales to be flat at best in the second half of its financial year – leading it to slash profit guidance from around £79 million to between £62m and £70m.

Kate Calvert, an analyst at Seymour Pierce, said Halfords first-quarter results were “disastrous”.

She added: “We see the departure of David Wild as a potential positive trigger for the shares and as a result are upgrading our recommendation to ’buy’, having been at ‘hold’ since 8 October.”