Argos made £889 million of sales in the 13 weeks to May 29, while the Homebase home improvement stores made £459 million, down 1.4 percent from the previous first quarter on a like-for-like basis.
Chief executive Terry Duddy said: "We continue to drive cash gross margin, further cost efficiencies and our increased investment plans. At this early stage of the financial year, we are targeting to achieve a similar level of profitability to last year."
At Argos, total sales declined by 5.2 percent; two new stores opened in the quarter, taking the portfolio to 747, and three stores were relocated.
The video gaming market continued to be particularly weak and, against the strong gains made by Argos a year earlier, TV sales were also down. These two categories accounted for approximately two-thirds of the overall decline in total sales. Growth continued in personal computers, white goods and toys.
Growth from the internet remained strong, led by Check & Reserve; the internet represented 32 percent of Argos' sales, up from 28 percent a year earlier.
Total sales at Homebase declined by 1.4 percent; two stores closed in the quarter, reducing the portfolio to 347.
Seasonal-related categories performed well, with sales held broadly flat in the period; this compared to double-digit growth last year when Spring 2009 weather conditions were particularly favourable. 'Big ticket' was also level on last year, supported by new product ranges and installation services. Sales for the remaining categories were marginally negative.
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