Home Retail Group has announced that its Argos chain has seen its ninth quarter of positive like-for-like sales.

However, the 1.2% rise was below expectations of a 3% rise and the company’s DIY and homewares chain, Homebase, saw like-for-like sales rise by just 0.1%, triggering a 7% fall in the group’s shares.  

John Walden, chief executive of Home Retail Group, commented: "The group has had a good first half. Argos delivered its ninth consecutive quarter of positive like-for-like sales growth in the second quarter. For the first time in many years, this sales growth was supported by an improved gross margin performance.
  
"Homebase performed well over its peak trading period, following up its good performance in the first quarter with broadly flat like-for-like sales in the second quarter.  This is especially pleasing given that we achieved this against a strong 11% like-for-like in the same period last year.

"At this halfway point of the financial year we expect to deliver full-year group benchmark profit in line with current market expectations, however, as always the full-year outcome will depend upon Argos' Christmas trading period.

"We remain cautiously optimistic about the broader economic environment. Key economic indicators seem to be improving, however retail spending in general has been inconsistent across both product categories and geographies, suggesting that there is not yet a sustainable, broad-based consumer recovery."