Home Retail , Britain's biggest household goods retailer, upgraded its annual profit forecast for the second time in 2013 as sales at Argos continue to improve.

The group, which in January raised its full year profit forecast by 10 million pounds to 83 million, said on Thursday it now expected pretax profit to be around 90 million pounds ($134 million).

Sales at Argos stores open more than a year rose 5.2 percent in the 8 weeks to March 2, its fourth quarter, ahead of analysts' consensus for a 2.1 percent rise.

Underlying sales at the group's Homebase division, Britain's No. 2 home improvement retailer, fell 1.5 percent in the period, better than analysts' consensus for a 2.8 percent fall.

(Reporting by Neil Maidment)