"Weak" game sales contribute to Argos profit warning

Home Retail Group, owner of UK high street chain Argos, has claimed profits for its last financial year will be down, following "difficult and volatile" trading conditions.

Among the goods contributing to the decline are video games, sales for which the Associated Press reports the group as calling "weak" and undermining more positive revenues from other consumer electronics.

Profits are likely to be between £250 and 255 million, Home Retail Group claimed, as opposed to the previously forecast £263 million.

Year-on-year sales are expected to be down around 5.6 per cent.

Observed CEO Terry Duddy, "There are clear signs of further pressures on consumer spending, with recent trading conditions, particularly at Argos, proving to be more difficult and volatile than we anticipated. Even some of the promotional activity is not prompting a positive response."

Duddy felt that the ongoing financial crisis and austerity measures had significantly impacted consumer spending.

Shares fell by around 8 per cent following the news.