City expects poor sales news from Dixons and Home Retail Groups

Published on 18/06/2012 00:00

brands including PC World, Argos and Homebase will be in the spotlight this week when two retail groups post figures.

PC World and Currys owner Dixons Retail Group has emerged from the storm battering the electronics sector with its reputation enhanced and its shares around a third higher than the start of the year. It said last month that profits were at the top end of City expectations.

Even so, the group is still forecast to report a 19 per cent decline in profits this week to £69.2 million, on sales slightly down at £8.1 billion.

Home Retail Group has already scrapped its dividend as a result of declines in the electronics and home improvement markets than caused a 60 per cent slide in annual profits.

Recent wash-out weather is likely to have placed more pressure on its Argos and Homebase chains, and the group will likely face calls to shut unprofitable stores when it reports quarterly sales tomorrow.

The City expects a 4 per cent fall in like-for-like sales in the three months to the end of May.