Home Retail Group posts positive Q1 results on the back of strong gardening and outdoor living sales.
Total sales at Homebase grew 5.8% to £465 in the 13 weeks to May 30, 2009, with like-for-like (lfl) sales up 3.8%.

Seasonally-related categories, which account for around 40% of the Q1 sales, experienced "low double digit growth", according to the interim management statement issued by parent company Home Retail Group.

Kitchen sales were also strong for the home improvement chain, while other categories were marginally lower than Q1 last year.

Home Retail Group states that the approximate 250 basis point gross margin decline at Homebase was driven mainly by the sales mix and an increased promotional stance.

Homebase opened three new stores in the 13-week period, taking its portfolio to 348.

Lfl sales at Argos saw a 2.8% decline, while total sales grew by 0.9% to £937m. Although the retailer reported further growth in consumer electronics, furniture and homewares "continued to be challenging".

Multi-channel sales accounted for 42% of Argos' total sales and its online Check & Reserve service grew by 45%.

Home Retail Group chief executive Terry Duddy said of the results: "Argos and Homebase each enjoyed better than expected sales in the quarter and grew market share. Homebase in particular saw its performance in gardening and outdoor products benefit from the excellent weather conditions."

However, Mr Duddy warned not to get too carried away with the group's performance: "At this early stage of the financial year we continue to plan cautiously, with our trading focus remaining on driving cash gross margin ad achieving further cost efficiencies."