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Underlying sales in its UK chain grew by 4.9%.
Sales rose 6% last year but underlying sales fell 1%.
Argos enjoyed a 2.7% rise in underlying sales in the 18 weeks to January.
Underlying sales, including a 17.8% rise in online sales, lifted 0.9%.
Nick Bubb, an independent retail analyst, said the fall in underlying sales would "unsettle investors".
For the year underlying sales at Argos climbed 2.1% while Homebase dropped 4.9%.
Stevens said the majority of that growth was coming from underlying sales growth, not new stores.
England's Ashes win in August did little to lift the long-term gloom for underlying sales.
Underlying sales growth of 2.9% was the weakest for about a decade.
Underlying sales slipped back 1% as austerity measures continue to bite.
Turkey was the standout performer internationally, with underlying sales up 7% after a storming fourth quarter.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com