Current trading outlook
The difficult consumer environment experienced in the second quarter has been followed by tough and volatile trading in the Group’s product markets since the period end. Like-for-like sales since 31 August 2008 at both Argos and Homebase have declined in percentage terms by high single digits. While profits for the financial year remain dependent on the key November and December trading periods, if sales rates were to remain as experienced in recent weeks throughout these months, the profit outcome for the year would be likely to be around the bottom of the current range of market expectations. On a benchmark profit before tax basis, the current range of published expectations is understood to be £327m to £370m, with a consensus of around £350m.
