13th Mar 2008 07:01
Home Retail Group Plc13 March 2008 13 March 2008 Home Retail Group plc End of Year Trading Statement Home Retail Group, the UK's leading home and general merchandise retailer, todayannounces details of the final eight-week trading period for the financial yearended 1 March 2008. Terry Duddy, Chief Executive of Home Retail Group, commented: "Argos' sales performance has rounded off a successful year in which we expectthe Group to deliver another year of double-digit earnings growth in line withmarket forecasts. Looking ahead, we continue to believe that the weakeningconsumer outlook, as already evidenced at Homebase, is likely to restrict growthin like-for-like sales in both businesses. While the new financial yeartherefore looks challenging, we will continue building on our significantoperational strengths across the Group." ---------- H2 Full yearPeriod to 1 March 2008 8 weeks 26 weeks 52 weeksArgosSales £566m £2,486m £4,321mLike-for-like change in sales 1.9% 0.3% 0.7%Net new space contribution to sales change 3.5% 2.8% 3.1%Total sales change 5.4% 3.1% 3.8%Gross margin movement Down c.50bps Down c.25bps Up c.50bps HomebaseSales £217m £715m £1,569mLike-for-like change in sales (5.3%) (6.0%) (4.1%)Net new space contribution to sales change 4.6% 3.0% 2.5%Total sales change (0.7%) (3.0%) (1.6%)Gross margin movement Up c.150bps Up c.200bps Up c.250bps ---------- ArgosTotal sales at Argos grew 5.4% to £566m in the eight weeks to 1 March 2008. Netnew space contributed 3.5%; there were seven openings and one relocation in theperiod, with the portfolio increasing by a net 27 over the full year to reach707 stores. Like-for-like growth was 1.9% in the period. A further excellent performance inthe video gaming category was the key driver of this, with a strong January saleand the earlier timing of Mother's Day also being contributory factors. Anadverse product mix impact, together with the January sale, led to anapproximate 50 basis point decline in the gross margin; ongoing sourcing gainsand foreign exchange benefits continued to be reinvested in lower prices forcustomers. Argos' Internet sales grew by over a third to represent 23% of allsales, driven in particular by the convenience of online orders for immediatestore collection on over 14,000 products out of the catalogue's total 18,500. HomebaseTotal sales at Homebase declined 0.7% to £217m in the eight weeks to 1 March2008. Net new space contributed 4.6%; there was one opening and two relocationscompleted in the period, with a net eight stores added over the full year. Theportfolio of 331 stores at the year-end also included 12 relaunched from theFocus purchase, with further stores anticipated to reopen in the coming weeks. Like-for-like sales declined 5.3% in the period. Most product categoriescontinued to see a difficult trading environment, although kitchens were onceagain an area of strong growth. Further supply chain progress and foreignexchange benefits led to an approximate 150 basis point gross margin increase. Enquiries Analysts and investors (Home Retail Group)Richard Ashton Finance Director 01908 600 291Stuart Ford Head of Investor Relations Media (Finsbury)Rollo Head 020 7251 3801 There will be a conference call for analysts and investors to discuss thisstatement at 8.30am this morning. The call can be listened to live on the HomeRetail Group website www.homeretailgroup.com. An indexed replay will also beavailable on the website later in the day. Home Retail Group will announce its full-year results on Wednesday30 April 2008. Information in this announcement is based upon unaudited management accounts. Inaddition, certain statements made are forward looking statements. Suchstatements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual events or results to differmaterially from any expected future events or results referred to in theseforward looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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