Carpetright , Britain's biggest floor coverings retailer, said it expected its underlying pretax profit for the current year to be below expectations and doesn't anticipate any improvement in trading conditions in the current year.

With sales volatility continuing to impact on the pace of margin improvement, we expect underlying pre-tax profits for the full year will be slightly below the lower end of the current range of market expectations, the company said in a statement on Tuesday.

The firm, which issued a string of profit warnings last year, said sales at British stores open over a year were down 0.5 percent in the 12 weeks to January 21, its fiscal third quarter.

That compares to a second quarter fall of 3 percent.

Like-for-like sales in the rest of Europe were down 0.3 percent during the period.

Carpetright trades from around 650 stores in Britain, Ireland, Belgium and the Netherlands.

Many Britons are curbing spending as their disposable incomes are squeezed by rising prices, muted wages growth and government austerity measures.

Carpetright has been particularly hard hit because of a stagnant housing market and because carpets are a discretionary purchase.

It has responded by lowering prices, expanding into beds, upgrading its range of laminate flooring and cutting costs.

(Reporting by James Davey)