Catalogue retailer Argos has posted a five per cent year-on-year dip in sales to 924m in its fiscal quarter ending August 28th.
Argos owner Home Retail Group said this was due to less demand for video games and furniture.
A statement read: Video gaming and large ticket home-related areas such as furniture saw challenging conditions.
Computers, white goods and toys all continued to show good growth, while small ticket homewares sales were ahead.”
The Group expects half-year profit to drop by approximately 20 to 25 per cent. Capital expenditure is projected to increase over 50 per cent to about 150m, with much of it going toward store refurbishments.
Home Retail Group CEO Terry Duddy added: Argos’ sales trend saw an improvement compared to the first quarter, despite its market being more challenging.”
For the year as a whole, we expect to deliver Group pre-tax profit of 250 to 275m, which is in line with the bottom half of the current analyst range. As always, the outcome will depend upon trading at Argos in its peak Christmas period.”
Home Retail Group will announce its half-year results on October 20th.