DIY retailer Homebase’s sales declined by 1.1% to £396m during the second quarter, according to parent company the Home Retail Group.
The group said the retailer’s total first half sales were £855m, with like-for-like sales flat. Seasonal product categories saw growth overall, led by garden furniture and garden products. Big ticket sales like kitchens were also ahead, but remaining categories were lower overall.
A 75 basis point gross margin decline was attributed to the net impact of adverse currency and shipping rates.
“While Homebase has produced a good first half peak trading performance on top of last year’s strong result, total group benchmark profit before tax in the first half is expected to reduce by approximately 20-25%,” said group chief executive Terry Duddy.
Group benchmark profit before tax, which also includes Argos, is expected to be £250-275m, in line with the bottom half of the current analyst range.
