Halfords Group - HFD Stream Log

drop today suggests some bad news in the background - any updates from brokers on back of results y'day seem more positive than negative... maybe having trouble recruiting new CEO to replace the soon-departing JMcD?

Just as well I trusted my instincts and ignored Deutsche Bank ... as someone suggests below, DM's analysts must be lazy as several factors weren't properly taken into account with HFD - e.g. lumping them in with Next is asinine - people will buy a 3-pack of elasticated knickers online but they won't buy a 400-quid bike online - at least not en masse; yes HFD are "retail", but very different in the product and proposition. HFD have also wisely hedged their FX exposure but you would expect any serious, savvy, Brexit-aware company that buys in materials in a different currency to do so ... did Deutsche Bank assume they hadn't /wouldn't have thought of this/or DB didn't think of this themselves??? Says more about Deutsche Bank than HFD if you ask me. For another thing, anyone with 2 eyes (or even 1 eye) can see that cycling is on the increase as "a thing" (for several reasons incl. health, environment, time-management, commuting costs...] which speaks to the point about multiple businesses in one as someone mentioned below (though not 'heard here first' despite the claim) - yes, it is somewhat unusual in 2017 to have such an amalgam but it is very likely that the parts would be worth more as separate entities and so there is potential value to be unlocked there at some future point - but that's just another good reason to hold HFD - a second good business could easily be spun out and/or sold to a 3rd party... customer loyalty has significant potential value for a prospective online operator in car parts particularly . ... imo ... 6-month target for HFD has to be in the region of 425p. [Disclosure: own between 100 and 1000 shares in HFD. ]

Beauforts note from this morning: "Halfords delivered excellent performance in FY 2016 on both financial and operational fronts. The company's retail segment led growth, with the motoring side of the business recording higher sales, despite unfavourable weather conditions. Cycling sales were down due to strong comparatives, poor weather and discounting across the market. Service-related sales increased 8.5%, driven in particular by cycle repair and elements of motoring fitting, such as audio and roof boxes. Halfords' Autocentres segment continued its growth momentum, recording higher margins and LFL sales growth for the 10th consecutive quarter. The company's Moving Up a Gear strategy, targeted at driving sustainable long-term growth, is developing well, including a step change in customer data, introduction of new services, product innovation and exciting collaborations. The acquisitions of Tredz and Wheelies are expected to add to capabilities in online sales of premium bikes and PACs. In light of Halfords' healthy progress in FY 2016 and bright prospects for FY 2017..." It's up on Research Tree

Up your jacksie UBS : P

Not very comprehensive note - doesn't take account of modest p/e; decent yield, strong brand and presence and on-going growth in cycling

This from the FT this afternoon: [link]

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