Hot summer lifts sales at Home Retail chains

12th Sep 2013 07:35

Home Retail, the owner of the Argos and Homebase retail chains, said it expected full-year profits to meet expectations after the good summer helped sales growth gather pace.Underlying sales at Argos rose 2.7% in the second quarter, picking up from 1.9% growth in the first quarter driven by strong sales in seasonal products. It has seen stellar growth in sales over mobiles and tables with mobile commerce now representing 17% of total Argos sales. But gross margins fell 50 basis points in the second quarter after it sold more electrical goods. Argos now faces the all-important Christmas period and Home Retail cautioned its full year outcome was dependent on how Argos fared during this period.At Homebase, underlying sales leapt 11% in the second quarter, accelerating from 1.4% growth in the first quarter. Seasonal products and big ticket items drove the improvement while sales in the remaining categories were slightly down, Home Retail said. Chief Executive Terry Duddy, who is planning to step down by July next year, said: "Whilst we continue to expect consumer spending to remain subdued we approach the important Christmas trading period in good operational shape."TB