Flooring giant Carpetright has revealed a 2.5% decline in group sales in the 13 weeks to July 31.
In the UK and Ireland like-for-likes dropped 3.4% while total sales dipped 0.9%.
In its European arm, comprising Netherlands and Belgium, like-for-likes fell 4.2% while total sales decreased 3.3%, in local currency.
Carpetright said the closure of its Poland operation accounted for 0.6% of its 2.5% group sales decline.
Carpetright chairman and chief executive Lord Harris said: “As announced previously, we had expected consumer demand across Europe to remain subdued as we entered our new financial year, and this view is reflected in the update announced today.
“We remain cautious about the outlook for consumer spending for the balance of the year and as a consequence continue to manage the business by exerting tight control over all costs, capital expenditure, stock and cashflow. Gross margins in the UK are up on previous year largely a result of managing promotional activity.
“Our focus on strong value-led retail brands will enable the Group to capitalise on its market leading positions in its geographical markets when economic conditions improve.”
Singer Capital Markets analyst Matthew McEachran called the results “disappointing” while Nick Bubb, analyst at Areden Partners, called them “poor”.