Tour de France lifts Halfords cycle sales

Tour de France fever has given Halfords a boost, as Britain gets on its bike.

The bike-and-car-parts chain posted a better than expected 7.9% rise in like-for-like retail sales in the 13 weeks to 27 June, with cycling powering 21.3% ahead, just days after the Tour de France came to Yorkshire and passed through London. Halfords said all areas in its cycling business recorded strong growth, led by a 35.1% surge in premium bike sales and a 72% rise in specialist clothing.

Chief executive Matt Davies hailed an "exceptional performance" in Halford's cycling business, which benefited from "favourable weather and increased interest in the Tour de France" as well as an improved website service.

He said that the exit of Britain's great hopes in the race – Mark Cavendish and Chris Froome who have both had to retire after crashes in the early stages – would not make a big difference to cycling sales. "We don't believe this is temporary we believe that as a country we are falling more and deeper in love with cycling and recognising the joy and health benefits and the power of the bike as a commuter tool and we expect that to continue." The UK's "summer of cycling" also includes the Commonwealth Games in Glasgow which start on 23 July and Davies suggested that event would continue to boost interest in the sport.

He said sales were growing in every type of cycling gear, from children's bikes to upmarket racers and even specialist food.

Halfords recently snapped up Olympic champion Chris Boardman's bike company. Even before the acquisition, it was selling about 50,000 Boardman bikes a year – a range of road, mountain and hybrid bikes priced at between £500 and £1,800. It is launching children's versions of the Boardman racing bikes.

However, Davies warned: "It's very difficult to generate this level of like-for-like sales growth year on year."

Davies said Halfords was not raising its profit expectations for the year after just one quarter of strong growth. Although analysts said sales were ahead of their predictions, shares in the company dipped nearly 3% to 478p as hopes of an even stronger performance were disappointed.

Davies said that the company did not need to maintain such high levels of cycling sales growth to achieve the aims of the three-year turnaround plan he outlined last year.

For the first time in years, the retailer recorded growth in all its categories, including car maintenance, car improvement and its Autocentres car servicing chain as Davies said an improved range and new services had boosted sales.

The retailer is winning market share from competitors thanks to improved stock availability and products, better trained and motivated staff and a switch from promoting mainly on price.