The group said fewer sat nav sales and a disappointing performance in cycles contributed to a 6.3 per cent fall like-for-like sales at its shops in the quarter to 1 October.
There was a 4.5 per cent drop in the previous three months, although Halfords said it still expected to grow half-year profits by around 12 per cent to between £67m and £69m.
It said it remained cautious in the the trading environment and said it would reinvest recent margin gains into increasing its promotional stance. The firm added that one area of focus is likely to be in cycles after a “relatively disappointing” one per cent drop in like-for-like sales over the quarter.
It said delays in the relaunch of new cycle ranges and on increased levels of competition in the market had hit its sales.
The company said it had failed to take full advantage of a UK market that “remains attractive and continues to grow” but was confident of a bounce back.