Home Retail says Argos sales dented by poor electricals market

LONDON, June 11 (Reuters) - Home Retail (Other OTC: HMRLF - news) , Britain's biggest household goods retailer, said quarterly sales at its Argos business fell, hurt by market declines in key electrical and seasonal product categories.

Sales at Argos stores open for more than a year fell 3.9 percent in the 13 weeks to May 30, its fiscal first quarter.

That compares with analysts' consensus forecast of a decline of 3.7 percent, and a 5.0 percent fall in the final eight weeks of the 2014-15 year.

Home Retail had cautioned in April first half sales at Argos would likely decline this year as it works through revamps to the business and battles weaker demand for tablets, consoles and TVs.

Like-for-like sales at Home Retail's Homebase DIY business rose 5.4 percent.

Gross margin was up 50 basis points at Argos but down 175 basis points at Homebase. (Reporting by James Davey, Editing by Paul Sandle)