Kesa Electricals, owner of the Comet chain, has warned that falling sales will lead to a loss in the first half.
Like-for-like sales at its Comet stores sank 9.9% in the three months to the end of July, against a 0.4% rise in the first quarter
Kesa blamed “particularly weak” sales of white goods such as washing machines and refrigerators.
Shares in the group declined more than 10% to 141.25 pence in morning trade following the profit warning. “This quarter has, as anticipated, been very tough,” said chief executive Jean-Noel Labroue.
“Trading conditions across all our markets deteriorated, particularly in the UK, and have not changed since the period end.”
Kesa also recorded a drop in sales at its Darty chain – the French market leader – with sales falling 3.2% to July compared to a 5.6% rise between February and April.
But while Kesa warned its Comet stores would “make a loss in the first half”, it did add that product margins at Darty remained stable.