Halfords boss David Wild out after profits dive

David Wild, the chief executive of Halfords, has left the bicycle retailer with "immediate effect" after a profit warning yesterday capped a sustained period of under-performance.

Halfords, which has more than 460 shops, blamed the exceptionally wet weather for a slump in sales of bikes and camping equipment in its first quarter.

Its non-executive chairman, Dennis Millard, will now lead the retailer in an executive role until it finds a replacement.

The group is seeking an executive who has experience of a service-led business, as well as retail.

This reflects the fact that 60 per cent of Halfords' revenues – including sales of bikes, the fitting of car bulbs and batteries, as well as car maintenance – now have a service element.

The most high-profile move of Mr Wild's four years at Halfords was the acquisition of Nationwide Autocentres for £73.2m in 2010, as well as pulling the plug on the company's fledgling operation in central Europe.

But following pre-tax profits of £125.6m in 2010-11, Halfords guided the City to profits halving to as low as £62m this year.

Shares in the retailer rose by 8.4p, or 4 per cent, to 205.8p yesterday, but they remain a country mile from their five-year high of 550p in June 2010.

Mr Wild, who has previously worked at Tesco and Walmart, said: "Now that we have developed the overall strategy that will guide the future of the business over the coming years, I feel it is the appropriate time to step down and seek fresh challenges elsewhere."

As a result of his one-year notice period, Mr Wild will receive his total pay of £645,399, including a salary of £517,650 and pension contributions in 12 monthly instalments. Executive search firm Egon Zehnder has been hired to find his replacement.

Halfords posted a 5.6 per cent slump in underlying sales over the 13 weeks to 29 June, which were dragged down by 9.6 per cent fall in cycling revenues.

While demand for premium bikes, such as its exclusive range from Olympic cyclist Victoria Pendleton, has been robust, the wet weather has hit sales of cheaper, family bikes.

However, its Autocentres business grew underlying revenues by 9.2 per cent in the last quarter.