Home Retail Group stocks down despite Argos sales rise
Sales at Argos are up for the first time in five years.
Sales at Argos are up for the first time in five years.
The share price of Home Retail Group was down today (May 1st) despite the news sales at Argos have increased for the first time in five years.
Like-for-like sales at Argos were up by more than two per cent for the year to March 2nd, with total sales up to £3.93 billion. But it was revealed Home Retail Group's other major UK brand – DIY chain Homebase – has continued to struggle.
The company's underlying pre-tax profits have therefore dropped for the fifth year in a row, falling to £91.1 million from £101.6 million 12 months ago.
Chief executive Terry Duddy described the results as "a good outcome to what has been a challenging year" and retail analysts Conlumino stated the failure of high street rival Comet has been a boost to Argos.
On the back of the release of the data, the share price of Home Retail Group fell to 146.29, which is down almost ten points – or over six per cent – on the start of the day's trading.
Learn about the sterling and forex trading at City Index.