Home Retail Group issues bleak warning over profit

HOME Retail Group yesterday warned that its half-year profits will be down by as much as a quarter due to the tough consumer climate.

Like-for-like sales at its Argos stores dropped by 6.5 per cent in the six months to 28 August.

Meanwhile, Homebase’s like-for-like sales dipped only 0.8 per cent as the good weather boosted sales of gardening equipment.

Overall, Home Retail said first half profits were expected to reduce by between 20 per cent and 25 per cent and that it was on course for full-year profits of between £250m and £275m.

Chief executive Terry Duddy said: “Argos’ sales trend saw an improvement compared to the first quarter, despite its market being more challenging.”