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Investing.com -- Halfords Group PLC (LON:HFD), the UK’s leading provider of motoring and cycling products and services, on Wednesday reported better-than-expected sales growth for the first half of its fiscal year, sending its shares up 7.2% as investors welcomed the positive trading update.
The company posted like-for-like sales growth of 4.1% for the 26 weeks to September 26, with its Retail division growing 4.0% and Autocentres increasing 4.3%. These figures exceeded analyst forecasts for both segments. Total reported Group sales rose by 3.3% compared to the same period last year.
Halfords also reported gross margin expansion year-on-year, partly driven by planned cost savings implemented to offset inflationary pressures. The company noted strong cash generation and disciplined inventory management had further strengthened its balance sheet from the net cash position reported at the end of fiscal 2025.
"I am very pleased with our progress in the first half of FY26 and want to thank all our colleagues for their efforts in delivering this performance," said Henry Birch, Chief Executive of Halfords.
The company maintained its full-year outlook, stating it remains comfortable with the published consensus expectations for underlying profit before tax, which ranges from £36 million to £39.8 million.
"Halfords has a strong market position in the UK motoring and cycling markets, with a good offer in both the retail and services sectors. Near term, we expect continued market weakness in tyres, but we see potential for a more resilient performance from the motoring and cycling markets," according to RBC.
Halfords operates through 370 retail stores, 498 consumer garages, and various mobile service operations across the UK. The company plans to provide a more detailed Group strategy update alongside its interim results, which will be published on November 27.
The strong performance comes as Halfords continues to focus on its motoring services business, which now represents approximately 80% of total sales across both its Retail and Autocentres segments.