Home Retail posted Q3 FY15-16 results lagging market expectations as well as our estimates, pinned down once again by a bleeding Argos and the negative impact of Homebase store closures. Although Argos (c.72% of total revenue) clocked its highest-ever sales on Black Friday (+41% y-o-y), the subpar revenue growth in the rest of the quarter and depleted gross margins led the company to issue yet another profit warning (second in four months). As per the revised guidance, the benchmark PBT in FY
19 Jan 2016
Q3 hamstrung by rickety Argos, while Homebase bids adieu
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Q3 hamstrung by rickety Argos, while Homebase bids adieu
Home Retail posted Q3 FY15-16 results lagging market expectations as well as our estimates, pinned down once again by a bleeding Argos and the negative impact of Homebase store closures. Although Argos (c.72% of total revenue) clocked its highest-ever sales on Black Friday (+41% y-o-y), the subpar revenue growth in the rest of the quarter and depleted gross margins led the company to issue yet another profit warning (second in four months). As per the revised guidance, the benchmark PBT in FY