Home Retail Group (HRG) on Thursday upgraded its full-year profit forecast, thanks to continued sales growth at its Argos chain.
Raising its full-year profit forecast for the second time since January, the group said that it expected to pocket £90 million in the soon-to-be-ended year.
The group's Argos chain reported an increase of 5.2 per cent in underlying sales over the eight-week to March 2. The increase in sales was mainly driven by a robust demand for tablet computers, fridges and freezers.
The owner of the Argos, Home Retail Group has warned the firm of the falling profits. The sales of Argos are falling continuously and the owner has blamed the fears of the consumers about the economy which forced them to spend less for the fall.
The Home Retail Group which is the owner of the DIY chain Homebase and Argos has said it was expecting a fall of 20% to 25% in its profits in the six months to the end of August.
The like for like sales at Argos fell down by 6.5% in the same period of six months while the DIY chain Homebase saw a 0.8% fall in its like for like sales.
Argos parent company Home Retail Group has announced that it would spend around £150 million to buy back shares and step up investment from £87 million in 2009 to between £125 million and £150 million in 2010.
Home Retail Group, which also owns Homebase chain, decided to overhaul its stores as it is facing cut-throat competition from other supermarket chains such as Asda and Tesco.
Shares in Argos possessor Home Retail Group took off today in the middle of rumor of a possible proposal from supermarket chain, Asda.
Home Retail, which also possesses Homebase, bounced more than 5% after it was acknowledged as a potential target in Asda's development plans.
The superstore, which is owned by US food giant Wal-Mart, is apparently considering a great acquirement as it looks to seal the gap between opponent Tesco and improve its share of the universal commodities market.
The Home Retail Group has shared that its yearly profits will be 20 Million Pounds more than earlier expected, mainly on the back of strong trading recorded at its Homebase and Argos chains.
For the year up-to February 27, the company hiked its forecasts as Argos managed to perform stronger than expected with like-for-like sales growing by 0.1%, and Homebase posted a 4% hike in same-store sales over the 18 weeks up-to January 02.