Argos reported profits for the six months to August 27th, with profits of £3.4 million, compared to £54.4 million in 2010.
Total sales were also down by 7.6 per cent to £1.68 billion for the period.
Terry Duddy, chief executive of Home Retail Group, commented: “Core customers at Argos have continued to be under greater pressure and there were ongoing challenging conditions across several product categories, most notably consumer electronics.
“As we now enter our busiest trading period market conditions remain both weak and volatile, and in these early weeks of the second half we have not seen the improvement in sales that we had anticipated.
"We are well positioned operationally and we will continue to shape the future of shopping for our customers, ensuring we bring unrivalled convenience and value to customers’ every day lives, whether shopping at home or on the move.”
Duddy also said it was unlikely it would hire a new managing director for Argos, following the departure of Sara Weller, before the end of December. The group wants to recruit someone who is capable of ultimately taking over from Duddy.