Halfords has seen its share price increase by 7% after reporting like-for-like (LFL) sales growth across its divisions.

The automotive and cycling products and services trader recorded group LFL sales growth of 4.1% in the six months to 26 September, with retail and autocentres LFL sales increasing by 4% and 4.3% respectively.

In its trading update for the first half of its financial year, Halfords recorded year-on-year gross margin expansion, which it said built on the "strong result" delivered in FY25. This was partially driven by planned cost savings to help mitigate inflationary pressures.

Furthermore, it stated that strong cash generation and disciplined stock management are further strengthening its balance sheet from the net cash position reported in the last financial year.

Looking ahead, Halfords said that its full-year outlook remains unchanged, with underlying profit before tax set to be in the range of £36m and £39.8m.

Investment director at AJ Bell, Russ Mould, concluded: "Halfords finally seems to have fixed its engine. It has reported growth across the board, higher margins, and strong cash generation. That’s quite a recovery from the spluttering performance Halfords has delivered in recent years.

"Investors lapped up the news, putting fuel back in the tank for the share price. It’s an encouraging update, but not enough for Halfords to upgrade its full-year outlook. Investors might not care as any progress is welcome given the retailer’s disappointing track record."

Halfords will publish its interim results for the first half of its financial year on 27 November. The firm added that the report will include a more detailed group strategy update.

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