Tablet craze helps Argos parent to hike forecast
Despite weaker homewares trading, sales at Argos jumped 4.3 per cent to £501 million in the eight weeks to 2 March.
Stablemate Homebase suffered a further sales fall, down 2.8 per cent to £191m, but, with margins improving, the parent company said it now expects to make £90m in full-year profits, about £6m ahead of City expectations.
Advertisement
Hide AdAdvertisement
Hide AdHome retail chief executive Terry Duddy said: “Against a backdrop of subdued consumer spending for the new financial year, we will continue to invest and are focused on delivery of the transformation plan to reinvent Argos as a digital retail leader and in the Homebase proposition.”
The group hopes to grow Argos’ turnover from this year’s £3.9 billion to £4.5bn in 2018 in an “ambitious but achievable” overhaul after a period of declining sales.
It announced plans in October to scale back circulation of its Argos catalogue and revitalise the business through its digital presence, with its 700-plus stores given internet access.
Internet sales now account for 43 per cent of Argos’ total revenues, up from 40 per cent a year ago.