U.K. retailer Home Retail, which operates the Argos catalog shops and Homebase stores, has turned in a loss for the 52 weeks to Feb. 28, as margins were hit across the business.

Total sales were down 1 percent to £5,897 million ($8,707 million), with like-for-like sales down 4.8 percent at Argos and down 10.2 percent at Homebase. Profit before tax was down 24 percent to £328 million ($484 million). 

Argos bought the Woolworth's Ladybird and Worth It brand names at the beginning of this year.

"In a particularly difficult trading environment, we have managed our costs and cash very effectively to limit the impact on profits," says Terry Duddy, chief executive officer. "This focus has put us in an even better position to trade through another tough year while further improving our competitive position. We will continue to develop our broad product range, benefit further from our advantaged sourcing operations and invest in our multi-channel operations in order to strengthen our position as the U.K.'s leading home and general merchandise retailer."