The group said it had been a demanding first quarter and warned that conditions were likely to remain tough, but it added that it expects to grow market share as a result of recent operational improvements.
Carpetright operates from 559 stores in the UK and Ireland, including 60 concessions and 38 Storeys outlets.
In a trading update, Carpetright said its rest-of-Europe business, based on the Netherlands, Belgium and Poland, continued to make solid progress, with sales, in local currency, improving by 8.2 per cent.
Lord Harris of Peckham, chairman and chief executive, said the tough first quarter in the UK reflected plunging levels of consumer confidence and the lowest mortgage approvals since records began.
He added: "The trading environment in the UK has become more difficult, and we can see this continuing for the rest of our financial year.
"However, we believe that our recent operational improvements enhance our resilience to challenging market conditions and that our strong competitive position will enable the business to continue to grow market share."
David Stoddart, an analyst at Altium Securities, said the figures for the UK and Ireland were much worse than expected.
He commented: "This is a disturbing sales performance from a strong market leader that we would expect to outperform the wider market."
Despite the company reporting a further improvement in margins, Mr Stoddart said he expected a sharp reduction in his profit forecasts.
Lord Harris, who launched the business from a store in Canning Town, east London, in 1988, announced last year he was considering an offer for the firm. He is a substantial shareholder in the business.
But the potential £850m move, which came after a period of disappointing trading, was dropped in March because of difficult credit conditions.
Tweet
