Argos says toys enjoyed "good growth" during its financial year ending March 2nd, 2013.
And its digital transformation plan is paying off - the retailer posted more impressive online growth figures.
Over half of all Argos sales are made via channels outside of stores.
Internet sales grew ten per cent during the year, to form 42 per cent of Argos' total sales.
The retailer's website and app visits increased by 24 per cent, with mobile shopping now representing ten per cent of total sales.
Argos’ multi-channel sales penetration increased to 51 per cent of total sales.
Overall, Argos' sales rose slightly from £3.872 billion to £3.931 billion during the 12-month period.
Argos and Homebase parent company Home Retail Group said overall group sales were flat at £5.475 billion, while group benchmark operating profit declined 4.5 per cent to £93.3m.
John Coombe, Chairman of Home Retail Group, commented: "The Group delivered a solid sales performance and very strong cash generation despite subdued consumer spending."
Terry Duddy, Chief Executive of Home Retail Group, added: "This was an encouraging year with both businesses growing their market shares. Argos delivered like-for-like sales growth for the first time in five years and multi-channel sales broke through the 50 per cent threshold.
"Our strong financial position enables Argos to deliver on its transformation plan to become a digital retail leader."
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