Car accessories and bike retailer Halfordshas reported that first-quarter profit was ahead of expectations as sales held up, costs were controlled and margins improved.

The retailer notched up sales growth of 1.7 per cent in the 13 weeks to June 27 and the rate of sales growth rose each month of the quarter.

Halfords was up against a strong comparative period last year, when the quarter benefited from the timing of Easter.

Adjusting for the absence of a full Easter this year, sales rose by 3 per cent and 0.2 per cent like for like. Excluding the effect of Easter, comparable store sales growth fell 1.1 per cent.

Halfords joint managing director Nick Wharton said: “While not immune to the ongoing challenging retail environment, our market leading positions, extensive ranges and unique service proposition continue to provide us with confidence in delivering full-year earnings in line with our expectations.”

However, Landsbanki analyst Paul Deacon said: “We believe the earnings risk lies on the downside because 2009 could easily be a bloody year, although Halfords does have very strong defensive characteristics.”

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