Home Retail ups profit guidance on strong Argos sales

Household goods retailer Home Retail Group this morning raised its profit forecast, on the back of strong sales from Argos.

The group, which also includes the Homebase brand, said it now expects pre-tax profit for the financial year to come in at £10m ahead of the current £73m forecast.

In October, Home Retail unveiled a plan to reposition its Argos operations from a catalogue-led business to a digitally-led one.

Like for like sales at Argos grew by 2.7 per cent over the 18 weeks to 5 January, with a strong performance from consumer electronics such as tablets offsetting weaker trading in homewares and jewellery.

Internet sales now account for 42 per cent of the retailer’s total sales, while within this mobile commerce – including tablet and smartphone – sales grew by 125 per cent.

However, like for like sales at DIY retailer Homebase fell by 3.9 per cent over the period.