Halfords Group PLC on Tuesday said it was focused on ‘controlling the controllables’, given a cautious consumer environment.

In a trading update, the Birmingham-based cycle and motor repair company said like-for-like sales were down 0.1% in the 26 weeks to September 27 against strong prior year comparatives. Last year saw sales grow 8.3% in the same period.

Autocentres, which accounts for 40% of group sales, delivered LFL sales growth of 0.8% against an ‘exceptionally strong’ LFL rise of 18.0% a year ago.

The firm flagged strong growth in services, maintenance and repair but said tyres remained challenging with price-conscious customers trading down into budget ranges.

High levels of technician wage inflation persisted, the firm added.

Retail, which accounts for 60% of sales, saw momentum grow through the first half after a wet Spring. Sales still fell 0.7% however.

Motoring products proved more resilient than expected but leisure cycling remained ‘challenging’. Performance cycling continued to outperform.

Halfords said 17 of the 25 Fusion towns originally planned for financial 2025 have been delivered, with the remainder due to complete this calendar year, consistently performing ahead of business case.

A further 14 Fusion locations will be added before financial year-end based on the excellent results to date, the firm added.

Despite an uncertain economic backdrop, Halfords maintained full-year guidance.

‘Despite pockets of improving consumer sentiment, the short-term outlook remains uncertain, particularly for big ticket, discretionary purchases,’ Halfords said.

The firm said it was prioritising investment ‘where we have high confidence in strong near-term returns.’

Chief Executive Graham Stapleton commented: ‘While consumers remain cautious in their discretionary spending compounded by uncertainty around the contents of the upcoming autumn budget, we have continued to focus on controlling the controllables and I am pleased with our performance.’

Halfords said it had seen an expansion in gross margin and that it is on track to deliver £30 million of targeted full year savings to mitigate around £35 million of expected inflation.

Shares in Halfords rose 3.8% to 147.40 pence each in London on Tuesday morning.

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