Slimmed down GUS on strong course
Argos and Homebase grow sales
October 15 2003
GUS has seen strong sales in its core retail operations across the last six mnths, with Argos once again outperforming the high street.
Having sold its mail order operations to Littlewoods owners the Barclay brothers earlier ths year, GUS said it expects to announce half-year profits ahead of market expectations next month.
Argos saw total sales increase by 14 per cent in the six months to September 30, with like-for-like sales up 7 per cent. With the product range one again expanded, consumer electronics, mobile phones, bedding, textiles and toys all performed particularly strongly.
Home delivery operation Argos Direct grew sales by 33 per cent, and accounted for 23 per cent of total sales, up from 20 per cent in the first half of last year.
The figures exclude the Argos Additions home shopping catalogue, which is scheduled to transfer to the new owners of the GUS home shopping business under the dale agreement.
DIY chain Homebase, acquired at the end of last year, grew total sales by 4 per cent across the seven months to Setember 30, with like-for-likes up 2 per cent.
GUS said Homebase is making considerable progress in strengthening the business and building a platform for growth. There are now 52 stores with mezzanine floors, an increase of 16 across the half, and trials of a new home furnishings range, [i]mi Home[/i], have started in ten stores. Sales growth at Homebase was driven by good performances from garden, kitchens and bathrooms.
GUS also owns a 77 per cent stake in luxury brand Burberry, which reported 17 per cent sales growth this week. Experian, the company’s consumer credit business, grew worldwide sales by 13 per cent.
Group chief executive John Peace said: “GUS has completed a successful first half, with good momentum in all of our businesses. We therefore expect interim profits to be ahead of market expectations. Despite challenging conditions in some of our markets, we look forward with confidence to the second half of the year and beyond.”
