Argos owner sticks by profits forecast

The owner of the Argos chain said its profits hopes remained intact today 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 (€2.23bn) in the 18 weeks to January 1, a fall of 3.2% and down 4.9% 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% reported in October and chief executive Terry Duddy said the high street chain had performed in line with original expectations for the festive period.

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 (€299m) to £275m (€329m).

Total sales at Homebase, which is less focused on Christmas demand, declined by 2.8% to £487m (€583m), while like-for-like sales dropped by 1.2% 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.

The internet represented more than £700m (€839m) or 38% of Argos sales, up from 35% a year earlier as more shoppers took advantage of online reservations and the Argos application for Apple iPhone devices.