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Retail

Halfords takes hit from bad weather

Car accessory and bike retailer said cycle sales in the first quarter took a hit from rain

Halfords Group plc (LON:HFD) is pinning its hopes on a good summer after bad weather took the wind out of cycling sales.

The car accessory and bike retailer said cycle sales in the first quarter took a hit from rain and the timing of Easter, although premium bike sales rose.

Halfords said it was hoping for a boost from this summer's Olympic Games in Rio de Janeiro, Brazil.

"We look forward to the peak summer cycling season, including our exciting new ranges from Laura Trott and Sir Bradley Wiggins launched ahead of the Olympics," chief executive Jill McDonald said.

The retailer became the latest to warn of the threat that uncertainty could pose to consumer demand following the EU referendum vote.

But McDonald added: "We are well-positioned as a business."

Group revenue in the 13 weeks to July 1 rose 2.1%, with retail up 1.5% and Autocentres lifting 5.9%.

Adjusting for the timing of Easter, group like-for-like revenue was flat while retail revenue fell 0.2% and Autocentres increased 1.7%.

The group reported robust motoring sales., with demand for bulbs, blades, batteries and new product and service offers driving higher car maintenance sales.

Another decline in sat nav sales hit car enhancement product sales, although it was partially offset by strong dash cam sales.

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