European electrical retailer DSG International said underlying sales and margins continued to fall in its first quarter as deteriorating economic conditions deterred shoppers from spending.
The group, which trades as Currys and PC World in Ireland, said today it remained cautious about its outlook as it reported a 7 per cent fall in like-for-like sales for the 16 weeks to August 23rd fell compared with the same period last year.
Analysts had forecast a decline of 4 per cent to 8 per cent.
The company has trimmed costs by £50 million under his watch, and is targeting a further £25 million of savings this year.
Ii said that in the UK and Ireland like-for-like sales fell 7 per cent in electricals and were down 12 per cent in computing.
"The economic backdrop in which the group operates remains difficult across Europe...We remain very cautious about the consumer outlook," chief executive John Browett said in a statement issued ahead of its annual shareholders' meeting.
DSG recently rebranded all of its 18 Dixons outlets in Ireland under the Currys name.
DSG, which trades as Elkjop in the Nordic region and UniEuro in Italy, said gross margins across the group were down 0.75 per cent. Total sales rose 4 per cent.
Mr Browett, who joined DSG last December, issued a strategic review in May, promising to "transform the DNA" of the retailer with a focus on improving stores and customer service, developing its multi-channel offer and cutting costs.
Like-for-like sales fell 4 per cent in the Nordic region and were down 12 per cent in the southern Europe division which includes the struggling Spanish and Italian businesses that were placed under review in May and could be sold.
DSG also said chairman John Collins would retire from the board after the 2009 AGM.
Shares in the group, which have lost two thirds of their value in the past 12 months, underperforming other leading European retail stocks by 59 per cent, closed yesterday at 52.75 pence, valuing the business at £935 million.