CAR parts and cycle retailer Halfords today said headwinds ranging from the World Cup to political uncertainty had dented sales progress.

The group, which has 462 stores in the UK and Ireland, reported a 2.1% drop in retail like-for-like sales in the first quarter of its financial year, a period covering the 13 weeks to July 2.

Halfords said it had been a sluggish start to the spring season due to poor weather in April and consumer nervousness ahead of the General Election and emergency Budget. This was followed by the World Cup in June, which meant the company delayed the start of its summer promotional campaign to mid July.

The company said its core categories of car maintenance and cycling maintained like-for-like growth, despite some delivery disruption from suppliers in the wake of the Chinese New Year.

Halfords produced a 0.7% rise in sales on a like-for-like basis in its previous financial year, when it increased profits by 27% to £117.1 million.

Chief executive David Wild said: "The resilience of the Halfords business model is confirmed by further like-for-like growth in our core categories despite the consumer headwinds experienced across the retail sector."

In February it moved into car servicing and repairs with the acquisition of Nationwide Autocentres for £73.2 million, with early trading signs from the new addition encouraging after flat like-for-like sales.

Nationwide has 225 sites but Halfords has plans to open another 200 outlets, creating 1,000 jobs.

While Halfords said it was on track to meet full-year guidance, shares opened more than 5% lower today as analysts said the 2.1% drop in like-for-like sales was slightly weaker than expected.

Singer analyst Mark Photiades said: "Despite this short term disruption management believe they are on track to deliver full year profit expectations and our view remains that the core Halfords retail business looks well positioned with its defensive, needs-driven offer."

He has stuck by his forecast for full-year profits in the region of £136 million.