Department store retailer Beales saw like-for-like sales down 4.5% in the 19 weeks to March 14.
The company said that poor weather in February had, in particular, had an adverse effect on trade. The results come on top of a decline of 3.2% in like-for-likes in the first quarter to January 31. Discounting also took its toll on gross margin, down on the previous year.
However, cost cutting saw expenses lower than in the previous year.
Looking ahead, chairman Mike Killingley said: “The year ahead will continue to be challenging but the board believes the strategies and actions being taken will in due course restore the group to profitability”.