Better than expected sales at Argos saw shares in parent company Home Retail Group rise 23 per cent yesterday.

Although like-for-like sales in the 13 weeks to June 2 were 0.2 per cent down on a year ago, it was a considerable improvement on the 8.5 per cent fall notched up during the previous three months.

In fact, total sales at the high street catalogue retailer were actually up 0.2 per cent to £819 for the March 4 to June 2 period.

Consumer electronics managed to match last year’s figures, driven by continued strong growth in laptops and tablets which offset sales declines in TV, audio and video gaming.

The store group also reported in an interim management statement that sales via its online check and reserve service grew by 24 per cent representing 29 per cent of total Argos sales, while total internet transactions grew by 17 per cent, accounting for 41 per cent of business.

Indeed, Argos reckoned that total multi-channel sales during the period from March 4 to June 2, now accounted for more than half (51 per cent) its sales, up from 46 per cent a year earlier.

The retailer blamed an adverse sales mix and ‘ongoing price investment’ for the 25 basis point decline in gross margins, which, said the company, was partially offset by expected benefits from reduced stock clearance activity, favourable currency rates and reduced shipping costs.

Home Retail Group chief executive Terry Duddy acknowledged that Argos had a solid start to its financial year, supported by its multi-channel performance.

“At this early stage of the financial year we are comfortable with current market expectations for full-year benchmark profit,” he said.

He added: “We will continue to plan cautiously, managing robustly both the cost base and the cash position of the group while prioritising our investment in the ongoing development of our multi-channel capabilities."