Argos owner confident of full-year outlook

Argos owner GUS today said it was confident about the outlook for the full year as it posted double-digit growth for its flagship brands during the third quarter.

GUS said catalogue retailer Argos outperformed its market in the 14 weeks to January 3, delivering 10% sales growth and improving gross margins.

It said 7% of the growth came from new stores while 3% was in like-for-like sales, with a particularly strong performance from consumer electronics, photography, gifts and mobile phones.

The group’s credit checking arm, Experian, increased its sales by 12% at constant exchange rates.

The division, which sold its US print and mail operations last month, would have seen 1% higher growth in both Experian North American and Global Experian, GUS said.

Strength in its Consumer Direct, fraud solutions and business information activities more than offset low single-digit growth in credit information and credit solutions.

Upmarket fashion retailer Burberry, in which GUS has a 66% stake, saw growth of 15% at constant exchange rates.

The only part of the business to record single digit growth was DIY retailer Homebase, where total sales increased by 7%. Like-for-like growth was 6% against a 4% decline in the same period last year.

GUS said kitchens, bathrooms and furniture performed strongly and the division’s new seasonal Christmas ranges did well.

Good progress being made in many areas in strengthening ranges ahead of the Easter trading peak.

Group chief executive John Peace said: “GUS has completed another successful quarter in all its businesses, with Argos, Experian and Burberry all again achieving double-digit sales growth.

“We remain confident about the outlook for the full year and beyond.”