Home Retail Q3 sales fall, beat analyst view

Home Retail, Britain's No. 1 household goods retailer, said sales had fallen less than analysts expected at both its Argos and Homebase units in the run-up to Christmas, and forecast yearly profit in line with its own previous forecast.
The company said on Thursday it expected full-year pretax profit to be around the mid-point of its previously indicated range of 250 mln pounds to 275 mln.
Sales at Argos stores open more than a year fell 4.9% in the 18 weeks to January 1, which includes its fiscal third quarter, compared with an expected 5.7% decline, according to a company poll of 17 banks and brokerages.
Sales had dropped 5% in the second quarter.
Homebase like-for-like sales fell 1.2%, compared with an expected fall of 2.0% and with flat second-quarter sales.
Argos gross margin fell 25 basis points on increased clearance activity, while reduced promotional activity helped boost Homebase gross margin by 75 basis points.
Shares in Home Retail, which last September lost its place in Britain's FTSE 100 index of leading companies, have lost 29% of their value over the last year, as cash-strapped low-income shoppers trimmed spending.
The stock closed on Wednesday at 206 pence, valuing the business at 1.66 bln pounds.