DSGI.LSInternational Plc, owner of Currys and PC World, has issued a profit warning for the second time this year.
The company gave a trading update for the 25 weeks up to 5 April 2008 in which it says total sales were up 6 per cent, but like for like sales for the period dropped 1 per cent.
DSG said that the trading environment was still particularly challenging especially in the UK, Italy and Spain.
The company said that an increased promotional environment had lead to a drop in like for like margins of 0.8 per cent in the period.
DSG revised its forecast for 2008 pre-tax profit down from £250 million to £200 million - £210 million.
John Browett, chief executive, said, The trading environment since we last reported has remained challenging across our markets, particularly in the UK, Italy and Spain. Whilst like for like sales patterns are broadly in line with those we reported over the Christmas period, it is clear that customers have become increasingly promotion and deal driven, impacting gross margins.
He continued, Going forward it is important that we increase our focus on delivering the value, choice and service that our customers demand, particularly in the prevailing difficult economic environment. I will present the first phase of the business review I have carried out since joining DSGi on 15 May 2008.