Argos jewellery sales dip despite 4.8% overall growth

Home Retail Group, the owner of Argos, today announced 4.8% sales growth for the 13 weeks from 2 March to 31 May, but revealed that jewellery sales declined slightly during the period.

Total sales grew by 4.8% to £868m, while like-for-like sales (which exclude new store openings) increased by 4.9% in the quarter. The firm said: “Growth was driven by a strong performance in seasonal products together with continued sales growth in electrical products, principally as a result of growth in video gaming and TVs, partially offset by a market driven decline in tablets.

“This combined growth more than offset small declines in the homewares, furniture and jewellery categories.”

It added that internet sales grew “in line with” total company sales and represented 42% of total Argos revenues. Mobile commerce grew by 56% and represented 21% of total Argos sales.

John Walden, chief executive of Home Retail Group, said: “We have had a good start to the year, with both Argos and Homebase delivering positive like-for-like sales growth. This growth was aided by a strong performance in seasonal products in both businesses, due to better weather overall versus the comparable period last year.

“In addition to this strong performance in seasonal products, Argos delivered further sales growth in electrical products whilst Homebase achieved growth in sales of big ticket products.

“We are pleased with this encouraging start to the year, but remain mindful that we will annualise more challenging comparators in both businesses through the remainder of the year. At this early stage of the financial year, we expect to deliver full year Group benchmark profit in line with current market expectations.”