Third quarter disappointment follows inclusion in popular fund Fundsmith Equity

Home Retail (HOME) 132p TRADING STATEMENT > THURSDAY 14 JANUARY > CHRISTMAS/THIRD QUARTER

Expectations are low ahead of Home Retail's (HOME) post-Christmas trading update (14 Jan) given it had already warned on profits before the peak festive season had even started (21 Oct 2015).

Yet investors will be more interested in comments from the Argos and Homebase retailer about why it rejected a cash and shares takeover proposal from supermarket giant Sainsbury’s (SBRY), as revealed on 5 January.

Bid rumours have been circulating round Home Retail for the past few months but Sainsbury’s wasn’t one of the names in the frame. Instead, private equity firms were seen as the most likely bidders.

Home Retail recently blamed the costs of a new 'Fast Track' delivery service for an expected earnings shortfall. It then encountered logistic problems with delays to Fast Track orders reaching stores in late November and early December, triggering widespread negative publicity.



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