Halfords has today reported a 4.1% rise in like-for-like first-half sales and stuck to its annual outlook, helped by growth in both its retail and car maintenance businesses.
The bicycles and car parts company said like-for-like sales rose 4% at its retail business and 4.3% at its autocentres division in the 26 weeks to September 26. A year ago, group like-for-like sales had fallen 0.1%.
Amid a challenging year for British retailers facing rising wage costs and weakening consumer spending, Halfords has been cutting costs, adopting more fluid pricing, and improving product sourcing.
However, concerns over potential tax hikes in finance minister Rachel Reeves' November budget have increased caution among consumers and businesses, leading them to bolster savings.
"After a difficult patch for the business, the early indicators are now pointing in the right direction, meaning Halfords looks better placed to ride out the storm," said Julie Palmer, a partner at Begbies Traynor.
Halfords said it was comfortable with analysts' expectations for underlying pretax profit of between £36m and £39.8m for the year ending March 2026, according to a company poll.