Homebase full year LFL sales rise 2.3%

Home Retail Group, the UK’s leading home and general merchandise retailer, announces details of the final eight-week trading period for the financial year ended 28 February 2015.

Homebase:

Like-for-like sales at Homebase declined by 0.9% in this short period, principally due to annualising a 9% like-for-like growth in the same period last year. Total sales declined by 4.7% to £193m and net closed space reduced sales by 3.8%. Full-year total sales declined by 0.7%, like-for-like sales increased by 2.3% and net closed space reduced sales by 3.0%.

There were 30 store closures and three store openings in the year, reducing the store portfolio by 27 stores to 296, a reduction that is ahead of our previous guidance for the current financial year and which is part of the previously announced Productivity Plan.

Full-year gross margin declined by approximately 100 basis points, principally driven by an increased level of stock clearance in respect of the store closures.

John Walden, Chief Executive of Home Retail Group, commented: “We are pleased to have delivered another full-year of like-for-like sales growth in both Argos and Homebase. Although our sales performance was weaker in the final short trading period, we managed the business effectively during this period and achieved a good performance in both gross margin and costs. As a result of this, we expect that Group benchmark profit before tax for the FY15 financial year will be towards the top end of the current range of market expectations of £120m to £132m. “Argos continues to make good progress with its Transformation Plan. Over the Plan’s first two years we have delivered a significant amount of change and many new capabilities. However, it is important that we achieve an appropriate balance between the implementation of these new capabilities and ensuring good customer experiences. We are on track to deliver both the Argos Transformation Plan and the Homebase Productivity Plan over the next three years.”

See the full publication here: http://www.insightdiy.co.uk/articles/home-retail-group-full-year-trading-update/637.htm

Source : Home Retail Group
http://www.homeretailgroup.com/media/265843/home_retail_eoy_14-15_trading_statement_12-03-15.pdf