Home Retail Group said its full-year pre-tax profit fell to £265.2m from £293m compared with the previous last year.
Sales for the 52 weeks to 26 February 2011 hit £5.8n – down three per cent on the previous year.
The figures were in line with guidance and the company maintained its 10p final dividend.
The group also said Sara Weller, the managing direcor of Argos, is standing down for personal reasons.
On the year ahead, the company said: "Prospects for the 2011/12 financial year are uncertain as consumers’ disposable income, and their willingness to spend, is impacted by an increased VAT rate, an increase in personal taxes and the rising cost of living plus the additional threat of public sector job losses and potential interest rate increases."