The owners of Homebase expect a “flat” like-for-like sales performance for the DIY chain in 2011/12 due to recent trading patterns.
Home Retail Group said Homebase’s annual sales for the 52 weeks ended February 26 were £1.55bn, down 0.3% on a year ago. Like-for-like sales for the first eight weeks of 2011 were up 3.8% to £208m.
Sales were driven by “big ticket” purchases (bathrooms and bedroom furniture), with other product categories remaining broadly flat.
“Taking into account our most recent trading, we are now planning on a more cautious basis than previously anticipated for the 2011/12 financial year,” said Home Retail Group.
Group chief executive Terry Duddy reported clear signs of further pressures on consumer spending, with recent trading conditions proving to be more difficult and volatile than anticipated. The group is planning for the year ahead with increased caution.
Group pre-tax profits (including Argos) were expected to come in at about £250-255m.
