Argos reported a 9.4 per cent fall in like-for-like sales in the final eight weeks of its financial year ending February 27.

However, in its end of year trading statement, parent company Home Retail Group said it expected pre-tax profits for the year to be around £290 million, ahead of market expectations.

Chief executive Terry Duddy called it “a good outcome to a challenging year”.

However, he added: “The final short trading period reported today saw volatile trading patterns, making it difficult to assess any changes in underlying consumer demand.

“For the new financial year, we continue to plan cautiously given the uncertain economic outlook, but do so from our position of operational and financial strength.”

Total sales at Argos stood at £537m for the eight weeks, a drop of 6.6 per cent.

The high-street catalogue retailer pointed out that like-for-like sales suffered from the three per cent or so negative impact of the later launch of its spring/summer catalogue and poor weather.

Sales for the year were £4.35 billion, 2.1 per cent down like-for-like but 1.5 per cent up in total.

Home Retail Group will announce its detailed full year results on April 28.