Halfords Group PLC (LSE:HFD) shares pedalled 6.4% higher to 146.17p as it reported improved sales growth from cycling products in its retail business in the first half of its financial year.
Group sales were up 4.1% on a like-for-like basis in the 26 weeks to 26 September, with retail LFL sales rising 4.0%, while Autocentres advanced 4.3%.
On a reported basis, total sales increased 3.3%, while gross margins expanded thanks to ongoing cost savings that helped offset inflationary pressures.
The retailer said cash generation was strong and disciplined stock management further strengthened the company’s net cash position .
Chief executive Henry Birch, who started in April, confirmed that the full-year outlook remained unchanged, in line with the City analyst consensus.
He promised to share his strategic plans alongside the interim results on 27 November.
Analysts at Peel Hunt said cycling led the charge in retail, although motoring was "steady enough".
While there was no upgrade made this juncture, "the risk is to the upside of our forecasts", the analysts said.