Argos owner delivers profits boost

Retail chains Argos and Homebase were today on course for strong annual profits after their owner took action to offset difficult markets.

Home Retail Group – the new name for retail conglomerate GUS – said margins were ahead of last year after it limited promotions and controlled costs.

Like-for-like sales in the 14 weeks to January 6 were up 4.3% at Argos, while the figure for Homebase showed a drop of 0.2%.

Home Retail chief executive Terry Duddy said: “Our trading approach in the period reflected an expectation of the general merchandise market becoming more difficult.”

He said profits for the full year at both Argos and Homebase were expected to be around the top of City expectations.