Shares in home furnishing retailer Carpetright slumped on Friday after the company warned full-year profits would fall well short of market forecasts.
The company said trading the important post-Christmas period had been significantly behind expectations with group sales down 2.3%.
Carpetright added that a "sharp deterioration" in UK trade had a significant impact on profitability and its outlook for the remainder of the year as it revised its full-year profit guidance to between £2m-£6m. Analysts had expected profit as high as £14m.
Like-for-like sales - in stores open long enough for comparable data to be available - fell 3.6% in the 11 weeks to 13 January and the company reported a decline of 40-80 basis points in gross profit margin.
Wilf Walsh, chief executive (left), said: "Despite a positive start to our third quarter, we have seen a significant deterioration in UK trading during the important post-Christmas trading period.