Value homewares retailer Dunelm like-for-likes declined 2% in the 13 weeks to October 1.
However, total sales grew 5.3% to £133.4m, and the retailer said it has maintained market share.
Gross margin has continued to increase year-on-year, although growth has slowed. Dunelm estimated that gross margin has increased 50 basis points.
The retailer opened one new superstore in the quarter, at Dartford, bringing the estate to 104 superstores.
Dunelm expects to open 15 over the year, with 10 scheduled for the second quarter and four more in the second half.
Dunelm chief executive Nick Wharton said: “Despite the challenges provided by the UK consumer environment, our Simply Value for Money proposition continues to resonate with customers in both established and new stores.
“Given the current environment we continue to take a disciplined approach to operating costs.
“Nevertheless, we remain confident about the growth opportunities provided both from store expansion and via the web, where we have just completed the launch of full Reserve and Collect functionality.”