The company, which sells bedding, curtains, furniture and home utility items, said there was a significant decline in like-for-like sales in the first four weeks from 30 June.
Total sales rose 1.7 per cent to £154.3m in the quarter ended 28 September.
Peel Hunt analyst John Stevenson said the like-for-like sales decline was worse than anticipated, but was partially offset by higher gross margins.
Gross margin for the period rose about 70 basis points from a year earlier.
“If the shares react badly to today’s update, we see this as a clear buying opportunity for this well managed, high growth and cash generative retailer,” Stevenson wrote in a note to clients.
Cantor Fitzgerald analyst Freddie George reiterated his ‘buy’ recommendation on the stock saying he expects sales to recover in the second quarter.