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The company said like-for-like transactions at its Argos chain of stores were down 8.1 per cent in the 13 weeks to May 29th, while sales at Homebase dipped 1.4 per cent.
As a result, the firm's stock was down 12p on the FTSE 100 at 09:04 BST, pricing the firm's shares at 226p each.
At Argos, lower demand for videogames and televisions contributed to the drop in sales, however there was growth in the white goods, toys and personal computers segments.
Seasonal items performed well at Homebase, with sales broadly flat compared to last year, even though spring weather conditions in 2009 were "particularly favourable", the company said.
Chief executive Terry Duddy stated the business is aiming to "achieve a similar level of profitability to last year", but admitted economic conditions are still "challenging and uncertain".
Posted by Greg Secker
