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| Version 0 | Version 1 |
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| Argos and Homebase owner warns on profits | Argos and Homebase owner warns on profits |
| (35 minutes later) | |
| The owner of Argos and Homebase, Home Retail Group, has said its full-year underlying profits could be slightly below market expectations. | The owner of Argos and Homebase, Home Retail Group, has said its full-year underlying profits could be slightly below market expectations. |
| Uncertainty over Black Friday trading, investment in online ordering and a "challenging" first half could mean underlying full year profit before tax is below £115m, Home Retail Group said. | Uncertainty over Black Friday trading, investment in online ordering and a "challenging" first half could mean underlying full year profit before tax is below £115m, Home Retail Group said. |
| In the half year to 29 August, group sales fell 2% to £2.6bn. | In the half year to 29 August, group sales fell 2% to £2.6bn. |
| But underlying profit before tax increased by 10% to £34.1m. | But underlying profit before tax increased by 10% to £34.1m. |
| "While group benchmark profit before tax increased slightly during the first half, performance overall was mixed," said Home Retail Group chief executive John Walden. | "While group benchmark profit before tax increased slightly during the first half, performance overall was mixed," said Home Retail Group chief executive John Walden. |
| Spending shift | |
| He reiterated that trading at Argos over the key Christmas period was likely to be "less predictable than usual" due to the impact of Black Friday shopping deals. | |
| Originating in the US, Black Friday is becoming a major day for UK retailers. Last year, police were called in a number of UK cities amid frenzied buying from shoppers. | |
| Analysts said Black Friday offers caused a shift in spending patterns in the final quarter of the year, which may have had a negative impact on Christmas shopping. | |
| Mr Walden added Home Retail Group had increased investment in "Fast Track", the firm's online ordering, delivery, and click and collect service. | |
| He said that Argos had a "challenging first half" - with like-for-like sales down 3.4%. | |
| "At this stage of the financial year we expect the group's full-year benchmark profit before tax to be slightly below the bottom end of the current range of market expectations of £115m to £140m," he said. |