ARGOS-to-catalogue shopping group Great Universal Stores has seen half-year profits damaged as a "serious weakness" in the clothing market hit its home shopping arm.

The group GUS, which sells clothes through its Kays, Great Universal, Choice and Innovations catalogues and employs more than 400 at its Burnley mail order site, added that the business continued to see tough conditions into the second half year.

And it warned the drop in sales would impact on the group's full-year profit, which was "likely to be below current market expectations".

Chairman, Lord Wolfson of Sunningdale, said: "In common with other clothing retailers, GUS Home Shopping has experienced a significant fall in sales and profits during the first half.

"This has continued into the second half and a major priority of the group is to take actions to address the long term trends in the UK agency catalogue business."

Pre-tax profits for the six months to September 30 dropped to £136.6 million, from £152.7 million last time.

The home shopping division, which used to be the main profit contributor to the group, now accounts for less than 15 per cent of profits.

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