Argos parent GUS profits rise by 44%

GUS, the owner of the Argos retail chain that has 18 stores in Ireland and over 500 in Britain, beat market expectations with a 44% rise in profits for the first half of the year.

The group, which also owns luxury goods retailer Burberry, announced profits of stg£354 million (505 million) before goodwill amortisation and exceptional items.

Taking these into account, profits fell 25% to stg£247 million (353 million) thanks to a goodwill charge of stg£91.4 million and a stg£15 million loss on the sale of its home shopping business in the UK and Ireland.

Chief executive John Peace said each of GUS’s main businesses performed strongly. He said the group would face challenges in the rest of the year but was confident in the outlook for the future.

An Argos spokesperson said its Irish stores were performing well. Argos is understood to be looking at expanding its Irish operations and could double the number of its stores here in the medium term.

The group was criticised by a consumer group last month for pricing differences between its Irish and UK stores. The Dublin-based European Consumer Centre claimed some items cost up to 30% more in Argos’s Irish stores.

Argos’s turnover was up 14% on the same period last year, while profits increased by 27%.

GUS also operates over 250 Homebase DIY stores, including three in Dublin and one in Limerick. The company and . The group bought Homebase in December last year and said it made good progress during the first six months of the year.

Argos Direct, which allows customers to have goods delivered directly to their homes, accounted for 23% of total Argos sales. Internet sales made up 4% of the total. GUS shares were up 2% to stg£7.57 yesterday, valuing the company at more than stg£7 billion.