Homebase’s benchmark operating profits slid 67% to £14.1m for the year ending February 28, 2009.
Sales at the DIY retailer declined 10% to £1.51bn, with its benchmark operating margin just 1%.
In contrast to the general trend of weakness, kitchens shine as one area of continued growth.
“Within individual product categories we have typically held or gained some share; however, our greater relative exposure towards some of the weaker markets such as furniture, homewares and DIY resulted in our overall 10% share of the total market remaining unchanged,” said Terry Duddy, chief executive of parent company Home Retail Group.
“In addition to reduced consumer demand, there are also further retail industry-specific pressures,” he added.
“Given the weakness of sterling, the cost of goods for the majority of home and general merchandise products will increase for virtually all UK retailers. A further area of pressure will be the likely continued cost inflation that retailers face.”
