Home Retail cheered by Argos growth Home Retail Group was cheered by a return to like-for-like growth in its Argos chain as it reported interim sales, even as those in its Homebase business continued to slip. Revenue at Argos, which offers a mix of catalogue and high street shopping, was £867m in the 13 weeks to September 1, up 1.4 per cent on a like-for-like basis - ahead of analysts" expectations and the first positive quarterly like-for-like growth since 2009. Overall sales in the chain rose 1 per cent. However the prolonged spell of poor summer weather hurt Homebase, which sells gardening and outdoor equipment as well as big-ticket items such as kitchens, bathrooms and fitted bedrooms. Sales declined 3.7 per cent on a like-for-like basis to £366m, although this was an improvement on the 8.3 per cent decline for the preceding quarter. Terry Duddy, chief executive, said it was "a good solid performance." The group is exposed to the homewares and consumer electricals sectors, two of the hardest-hit areas on the high street and has suffered as cash-strapped consumers delayed expensive home improvements and buying electrical goods. Mr Duddy added that the group expects to deliver full-year pre-tax profit of £72m but cautioned that the Christmas trading period - traditionally the most important quarter for the retail group in terms of sales - would be more telling for the retailer's performance. Argos" performance was largely driven by the success of its consumer electronics business, despite Christmas traditionally being the peak period for sales of items such as tablet computers and ereaders. "With electrical products making up around half of Argos" sales, its strong value credentials across tablets and ereaders, together with growth in the white goods category, has seen performance stabilise," said Matt Piner, lead consultant at Conlumino. Mr Duddy attributed the rise to the growing popularity of devices such as iPads and Kindles bolstered by more affordable prices as ranges expand. Home Retail closed seven Argos stores in the quarter, taking the number of outlets to 739. It also shut one Homebase store, leaving 340 outlets. The retail group has focused on trimming its store portfolio as leases come up for expiry, rather than making widespread closures. Shares in Home Retail were down 5.13 per cent to 94.3p in mid-afternoon trading. ● Strong sales and rising profits gave Dunelm Group the confidence to raise its dividend as the out-of-town home furnishings chain continued to defy the difficult environment for homeware retailers. Pre-tax profit rose 15.1 per cent to £96.2m in the year to June 30, on revenue up 12.1 per cent to £603.7m. The full-year dividend rose 21.7 per cent to 14p after a final payout of 10p was recommended. The company will also propose returning £65.8m of capital to shareholders in an additional dividend later this year. Shares in Dunelm were up 9.28 per cent at 683p in mid-afternoon trading.