UK retailer GUS beat analysts' forecasts with a 15% leap in first-half profits, driven by strong sales at its general merchandise store Argos, financial unit Experian and Burberry fashion group.
Profit before tax, goodwill and exceptional items for the six months to end-September came in at £406m, GUS said, topping the £384-401m forecast.
Like-for-like sales at Argos, which sells a range of goods from jewellery to toasters through its high-street catalogue stores and website, rose 7% during the six months to end-September driven by sales of consumer electronics, photography and white goods.
Rival electrical retailer Dixons warned yesterday that the rate of its sales growth had slowed in recent weeks and said consumer appetite for expensive items like top-of-the-range TVs and stereos might peter out.
GUS did not give any details on current trading, only saying it was confident about the ability of its businesses to compete in challenging conditions. 'While not underestimating the current challenges in some of our markets, we have clear strategies for growth in each of our businesses and are confident of the strength of their competitive positions,' Chief Executive John Peace said in a statement.
Experian, which keeps credit information on over 200 million customers, saw profits rise 13% over the six months. GUS said it was the fifth consecutive six-month period of double-digit sales and profit growth at constant exchange rates.
First-half profit at fashion group Burberry, famous for its trademark check, rose 22% at constant exchange rates.
Burberry, two-thirds owned by GUS, reported strong first half profits earlier this week, and said it would use its cash to buy back shares from GUS and other shareholders, netting GUS around £170m. The buyback will not change GUS's 66% holding in the company.
