Carpetright has seen sales slump in the first half of the year as the retailer warned that the collapse in sterling will increase costs.
The group said that stiff competition led to a 2.9% decrease in like-for-like sales in the UK during the period, with boss Wilf Walsh flagging "variable consumer demand".
Carpetright added that, as a result of "increased sourcing costs resulting from the devaluation of sterling, competitive market conditions and a mix impact", annual gross profits in the UK are now expected to come in between 1.5% to 2% lower than previously guided.
However, group profit expectations for the full year remain unchanged.
Chief executive Mr Walsh said: "Trading conditions in the UK in the first half reflect variable consumer demand and increased competitive pressures.
"Against this background, our plan to revitalise the UK business remains on track and we are now almost halfway towards our target of 100 store refurbishments in the current financial year, with investment in the first half weighted to the latter part of the period."
In the aftermath of the EU referendum, the retailer said that the vote could trigger "uncertainty" among shoppers, adding to warnings from the likes of Foxtons, EasyJet and British Airways.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here