Embattled cycle-to-car-parts retailer Halfords has witnessed the surprise departure of its chief executive after it declared a 12.4 drop in like for like revenue for the first 8 weeks of the year.
The resignation of Halfords boss David Wild was confirmed “with immediate effect” after the company’s share price had dropped by half over the course of a year and the group’s car enhancement division endured a particularly sluggish quarter.
First quarter like-for-like revenue in both the car enhancement and leisure divisions were down a massive 10.5%.
Dennis Millard, interim executive chairman of Halfords, said that the consumer environment remains difficult, blaming the recent inclement weather.
He explained: “The unseasonal weather this quarter had a direct impact on sales of cycles and outdoor leisure products.
“In this challenging economic environment, the management team will be focused on maximising our trading performance and cash generation, prudent cost management and delivering the longer term strategy outlined to shareholders in May 2012.”
The company confirmed it had started the search for a new chief executive and acknowledged the ‘strategic insight’ delivered by former boss David Wild.
Interim executive chairman, Millard, added: “It is felt that now is the right time for a change of leadership.”
As a result of his stepping down from the board, David Wild will not be proposed for re-election as a director at Halfords’ AGM on 31 July 2012.