Argos and Homebase sales shudder in the snow

Ian King, Deputy Business Editor & , : {}

Home Retail Group, the owners of Argos and Homebase, certified currently to a dump in sales at both since the commencement of 2010, but insisted that full-year increase were approaching to be improved than expected.

Britains greatest domicile products tradesman pronounced that, since the begin of the year, like-for-like sales at Argos that magnitude how stores open in the same format for some-more than a year have traded were down by 9.4 per cent on the same duration last year.

At Homebase, Britains second-biggest do-it-yourself tradesman after BQ, they were down by 0.6 per cent in the same period.

The association additionally certified that distinction margins during the duration had additionally fallen.

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However, Terry Duddy, the arch senior manager of Home Retail Group, pronounced that the companys full year pre-tax increase were right away approaching to be around 290 million, somewhat forward of marketplace expectations.

It was the second time in 3 months that Home Retail Group has pronounced annual increase will be improved than expected.

He said: This is a great result to a severe year, and is sum with glorious money generation.

Mr Duddy pronounced that sum sales at Argos since the commencement of the year were down by 6.6 per cent to 537 million.

He pronounced that the bigger tumble in like-for-like sales reflected both the bad go on in Jan and to a after launch of the store giants spring/summer catalogue.

He pronounced that the decrease in distinction margins was due to the diseased pound.

At Homebase, Mr Duddy pronounced that go on had additionally played a part, with the debility of argent additionally attack hard.

He added: This short trade duration reported currently saw flighty trade patterns, creation it formidable to consider any changes in underlying consumer demand.

"For the new monetary year, we go on to plan carefully since the capricious mercantile outlook, but do so from the on all sides of operational and monetary strength.

Shares of Home Retail Group, that have risen by 31 per cent during the past year, rallied 6.5p to 274.3p in early trading.

But Freddie George, a sell researcher for the broker Seymour Pierce, told clients to go on offered the shares after what he described as a churned trade statement.

He said: The marketplace is approaching to be endangered with the diseased like-for-like sales at Argos. Looking ahead, formula in 2010-11 are approaching to be influenced by a some-more formidable medium-term trade outlook, with the ubiquitous choosing and the World Cup, foe intensifying, quite from the food retailers ramping up their efforts, and from new debility in sterling.

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