Argos owner sticks by profit forecasts

THE owner of the Argos chain said its profit hopes remained intact after strong demand for laptops and toys helped it overcome "some particularly challenging and volatile" conditions in the run-up to Christmas.

Home Retail Group, which also owns DIY retailer Homebase, said Argos racked up sales of 1.86bn in the 18 weeks to January 1, a fall of 3.2 per cent and down 4.9 per cent on a like-for-like basis on the same period a year earlier.

However, this same-store figure was better than the rate of 6.5 per cent reported in October and chief executive Terry Duddy said the high street chain had performed in line with original expectations for the festive period.

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He added that profits for the year to the February were set to be around the mid-point of its previously guided range of 250m to 275m.

Total sales at Homebase, which is less focused on Christmas demand, declined by 2.8 per cent to 487m, while like-for-like sales dropped by 1.2 per cent even though sales of big-ticket items benefited from business ahead of January's VAT rise.

The toughest market for Argos was in video gaming, while television sales were also down against a strong performance last year.

The jewellery category was also weak but Argos saw an "excellent" performance in laptops and tablet computers, as well as further growth in white goods and toys.

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