Homebase LFL sales up 1.4% in Q1

Home Retail Group, the UK’s leading home and general merchandise retailer, today publishes an Interim Management Statement covering the 13 weeks from 3 March to 1 June 2013.

Terry Duddy, Chief Executive of Home Retail Group, commented:

“Argos has delivered a good start to the year driven by continued success in consumer electronics and electricals, supported by growing internet and mobile commerce sales. Overall, its trading has been consistent with our expectations. Homebase produced a positive like-for-like sales performance, however seasonal sales were adversely impacted by the volatile weather and as a result its performance for the quarter was slightly behind our expectations. Whilst we expect consumer spending to remain subdued, we are on track with delivering our investment plans to drive the long term development of both Argos and Homebase.”

Homebase:
Total sales at Homebase grew by 0.2% to £422m. Net closed space reduced sales by 1.2% in the quarter with the store portfolio remaining at 336.

Like-for-like sales increased by 1.4% in the quarter driven by the performance in big ticket products. This was partially offset by reduced sales of seasonal products which represented about 40% of total sales in the quarter and which were adversely impacted by the volatile weather conditions. Sales for the remaining categories were broadly flat.

The approximate 200 basis point gross margin decline was principally driven by a return to a more normal level of promotional sales versus the unusually low level in the first quarter of the previous financial year.

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Source : Home Retail Group
www.homeretailgroup.com/media/159375/home_retail_group_q1_13-14_13-06-13.pdf