Argos's total sales climbed 5.4 per cent and like-for-likes rose 1.9 per cent in the 8 weeks to March 1. In a statement, Argos said: “A further excellent performance in the video gaming category was the key driver of this, with a strong January Sale and the earlier timing of Mother’s Day also being contributory factors.”
Argos said the January Sale and an “adverse product mix impact” contributed to a 50 basis points decline in the gross margin in the 8-week period. However, over the full year, Argos’s gross margins improved 50 basis points.
Argos internet sales rose by more than a third to account for 23 per cent of all sales, largely driven by the growing popularity of its order click-and-collect service.
For the full-year to March 1, Argos reported a 3.8 per cent uplift in total sales to£4.32 billion, on like-for-likes up 0.7 per cent.
Stablemate DIY chain Homebase’s like-for-like sales worsened in the 8 week period to March 1, falling 5.3 per cent. Home Retail Group said: “Most product categories continued to see a difficult trading environment, although kitchens were once again an area of strong growth.”
For the full year, Homebase reported total sales down 1.6 per cent and like-for-likes down 4.1 per cent.
Home Retail Group chief executive Terry Duddy said: “Looking ahead, we continue to believe that the weakening consumer outlook,k as already evidenced at Homebase, is likely to restrict growth in like-for-like sales in both businesses.”
No comments yet