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Home Retail Group reports Argos sales rise | Home Retail Group reports Argos sales rise |
(about 1 hour later) | |
Argos has reported a rise in underlying sales for the first time in five years, its owner Home Retail Group has said. | |
Like-for-like sales at Argos - which strip out the impact of new store space - rose 2.1% for the year to 2 March, with total sales up to £3.93bn. | |
But the group's other major business, Homebase, has continued to struggle. | But the group's other major business, Homebase, has continued to struggle. |
As a result Home Retail's underlying pre-tax profits fell for the fifth year in a row, falling to £91.1m from £101.6m a year ago. | As a result Home Retail's underlying pre-tax profits fell for the fifth year in a row, falling to £91.1m from £101.6m a year ago. |
Chief executive Terry Duddy described the results as "a good outcome to what has been a challenging year". | Chief executive Terry Duddy described the results as "a good outcome to what has been a challenging year". |
The company has been working to revamp Argos by increasing sales through its website and using its "check and reserve" service. | |
Products bought through these channels now represent more than 50% of Argos's sales. | |
Home Retail Group said Argos was also helped by sales growth in a number of categories, most notably in consumer electronics where demand for tablet computers has been strong. | |
Analysts also said that sales of electronics and white goods had been helped by the demise of competitors such as Comet in the last year. | |
In contrast, sales at DIY chain Homebase have continued to fall, despite the business increasing its market share, and operating profit more than halved last year from £23m to £11m. | |
The business has struggled with unfavourable weather, a sluggish housing market and weak consumer confidence, according to analysts. | |
Home Retail Group said it expected market conditions to remain difficult over the coming year, but said it was in a strong financial position which left it "well positioned for the economic recovery". |