Retailers report mixed results
LONDON (AP) — Britain's struggling retailers posted a mixed bag of trading statements yesterday, with sales of cheap clothes and baby equipment staying strong while electronics and home improvement goods slumped.
Associated British Foods PLC said sales at its discount clothing chain Primark helped boost revenue by 21 percent in the 16 weeks to January 3 from the same period last year. Shares remained flat, up just 0.6 percent, as the company warned that its Chinese sugar operations were weak.
Europe's largest mobile phone retailer Carphone Warehouse Group PLC also managed a strong Christmas trading period and reported a 13 percent rise in retail revenues to £1 billion pounds ($1.5 billion) in the last three months to December, sending shares up 9.6 percent.
Mother and baby specialist Mothercare managed to grow in a difficult market, and said third quarter same-store sales in the 13 weeks to January 9 rose 1.1 percent. It said that while British sales were down, sales at its fast-growing international division were up a robust 49 percent.
Electronics retailers and companies closely tied to Britain's turbulent housing market fared less well.
Home Retail Group, owners of the Argos catalogue company and home-improvement chain Homebase warned its customers had cut spending on big-ticket items, sending shares tumbling.
Britain's largest electronics retailer DSG International PLC also said sales over the holiday period fell as customers waited for discounts to kick in. The company, which owns PC World and Currys, saw its shares tumble after saying it expected sales to continue falling over the rest of the year.
One of Britain's biggest home builders, Barratt Developments PLC, said prices had been cut sharply in the last quarter of 2008, as property companies tried to reduce the levels of unsold stock. Its shares slipped 1.8 percent.