Subdued performance in Argos in H1 16 (ending August) and uncertainty on Argos's Christmas season performance in H2 16 led the company to issue a profit warning. As for the new guidance, FY16 PBT (pre-exceptionals) is likely to be below the consensus range of £115-140m as further slippage of 50bp in the gross margin is expected in both businesses (Argos: down 75bp to 30.3% and Homebase: down 100bp to 47.5%). Total sales in H1 declined 2% to £2,628.5m; Argos was down 1.5% to £
29 Oct 2015
PBT guidance lowered; gross margin erosion amidst weak markets
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PBT guidance lowered; gross margin erosion amidst weak markets
Subdued performance in Argos in H1 16 (ending August) and uncertainty on Argos's Christmas season performance in H2 16 led the company to issue a profit warning. As for the new guidance, FY16 PBT (pre-exceptionals) is likely to be below the consensus range of £115-140m as further slippage of 50bp in the gross margin is expected in both businesses (Argos: down 75bp to 30.3% and Homebase: down 100bp to 47.5%). Total sales in H1 declined 2% to £2,628.5m; Argos was down 1.5% to £