Carpetright said sales remained depressed after deep discounts on its floor coverings failed to wake UK consumers from their slumber.
Carpetright said like-forlike sales in the UK and Ireland were 6.7 per cent lower than a year ago during the 25 weeks to April 29.
Promotional offers launched over the summer included knocking a third off the prices of carpet rolls. The group also decided that its Madness sales should include an extra 20 per cent discount on products already being sold at half-price.
But rather than driving an uplift in sales, these offers ate into profitability and Carpetright said gross margins were lower than a year ago.
Finance director Ian Kenyon said the warm weather in October had also hurt sales as customers often decide to buy a carpet when they turn their heating on.
Mr Kenyon said: " Customers don't appear to have changed their shopping patterns in terms of what they are buying - there just appears to be less of them."
Analysts were disappointed by the trading update even though Carpetright insisted it was capturing more of the market in the tough retail climate. It also stuck by its view that full-year margins will be higher than a year ago.
The sales figure announced yesterday represents only a modest uplift on the 7.5 per cent decline after 15 weeks of its financial year.
Carpetright added that total sales for the 25 weeks were down 6.2 per cent even though its portfolio in the UK and Ireland had grown by 11 stores overall. Total sales at its 93 stores in Europe were 7.1 per cent higher than last year.
Shares closed up 18p to 913p.