This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13708556
The article has changed 8 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Argos sales slide hits Home Retail Group shares | Argos sales slide hits Home Retail Group shares |
| (about 2 hours later) | |
| Argos has reported a big drop in sales for the past three months after experiencing worse-than-expected trading conditions, its owner has said. | Argos has reported a big drop in sales for the past three months after experiencing worse-than-expected trading conditions, its owner has said. |
| Home Retail Group shares sank 11% after it said like-for-like sales - which strip out new selling space - at Argos fell 9.6% in the 13 weeks to 28 May. | Home Retail Group shares sank 11% after it said like-for-like sales - which strip out new selling space - at Argos fell 9.6% in the 13 weeks to 28 May. |
| It added there had been a "significant decline" in sales of consumer electronics goods at Argos. | It added there had been a "significant decline" in sales of consumer electronics goods at Argos. |
| However, trading at its Homebase DIY chain was helped by the warm weather. | However, trading at its Homebase DIY chain was helped by the warm weather. |
| "Trading conditions, particularly at Argos, have proved to be more difficult and volatile than anticipated," said Terry Duddy, Home Retail Group's chief executive, in the firm's trading update. | "Trading conditions, particularly at Argos, have proved to be more difficult and volatile than anticipated," said Terry Duddy, Home Retail Group's chief executive, in the firm's trading update. |
| "Despite this the group has gained or held market share in its businesses." | "Despite this the group has gained or held market share in its businesses." |
| Like-for-like sales at Homebase rose 1.6% over the three month period, which Home Retail Group described as a "good outcome" and was helped by strong sales of garden goods. | Like-for-like sales at Homebase rose 1.6% over the three month period, which Home Retail Group described as a "good outcome" and was helped by strong sales of garden goods. |
| At Argos, the main factor behind the recent sales slump was the fall in the consumer electronics market, the company said. | At Argos, the main factor behind the recent sales slump was the fall in the consumer electronics market, the company said. |
| "The difficulty of this market, together with the volatility of overall sales, has made the balance of the year more difficult to predict," Mr Duddy said. | "The difficulty of this market, together with the volatility of overall sales, has made the balance of the year more difficult to predict," Mr Duddy said. |
| "While we remain cautious for the balance of the financial year, we are focused on our operational performance while continuing to invest across the businesses," he added. | "While we remain cautious for the balance of the financial year, we are focused on our operational performance while continuing to invest across the businesses," he added. |
| In April, Home Retail Group reported a 10% fall in profits for the year to 26 February. | In April, Home Retail Group reported a 10% fall in profits for the year to 26 February. |
| Consumer pressure | Consumer pressure |
| Sports fashion retailer JD Sports also released a trading update on Thursday, in which it said underlying sales had dipped slightly. | Sports fashion retailer JD Sports also released a trading update on Thursday, in which it said underlying sales had dipped slightly. |
| Like-for-like sales over the first 18 weeks of its financial year were down 2.8%, having dropped 1.2% in the first eight weeks. | Like-for-like sales over the first 18 weeks of its financial year were down 2.8%, having dropped 1.2% in the first eight weeks. |
| However, the retailer said that comparisons had been made more complicated because last year's trading was helped by the run-up to the 2010 World Cup. | However, the retailer said that comparisons had been made more complicated because last year's trading was helped by the run-up to the 2010 World Cup. |
| Nevertheless, it said its outlook remained cautious because of the "very clear downward pressures on levels of gross consumer expenditure in our market and the increased VAT take from such expenditure". | Nevertheless, it said its outlook remained cautious because of the "very clear downward pressures on levels of gross consumer expenditure in our market and the increased VAT take from such expenditure". |
| Car parts retailer Halfords also said it expected the consumer environment to "remain challenging", as it reported a 7.7% rise in full year profits to £118.1m. | |
| The firm said like-for-like sales in the nine weeks to 3 June were up 0.8%, helped by a strong rise in sales of leisure goods such as bicycles. | |
| On Tuesday, the British Retail Consortium (BRC) said retail sales in May had fallen by 2.1% compared with a year earlier. | On Tuesday, the British Retail Consortium (BRC) said retail sales in May had fallen by 2.1% compared with a year earlier. |
| The previous two months has seen sales increase, but the BRC said the May figures were a more realistic reflection of the "tough conditions" on the High Street as March and April had been "distorted" by a late Easter, an extra bank holiday and good weather. | The previous two months has seen sales increase, but the BRC said the May figures were a more realistic reflection of the "tough conditions" on the High Street as March and April had been "distorted" by a late Easter, an extra bank holiday and good weather. |