The Home Retail Group has suffered a 60 per cent year-on-year decline in profits after a poor performance from Argos.
The Home Retail Group’s profits fell from £265.2m last year to £90.2m. The main culprit was Argos, whose sales declined seven per cent to £3.8bn.
“While the Group’s performance in the short term cannot be immune from the economic environment, we continue to focus on its strategic advantages to ensure that it will be well positioned for the economic recovery over the long term,” chairman Oliver Stocken stated.
Chief executive Terry Duddy added: “In a particularly difficult trading environment, we have managed our costs and cash effectively.
“While we remain cautious about the consumer outlook over the short term, we are well positioned operationally and we will continue to prioritise investment in our leading multi-channel capabilities to shape the future of shopping for our customers, ensuring we bring unrivalled convenience and value to customers’ everyday lives, whether shopping at home or on the move.”
Stocken will be retiring from the Argos board this July and will be replaced by John Coombe.