Clinton Cards has said it found trading "tough over the Christmas period.
Like-for-like sales rose 0.4 per cent in the five weeks to 1 January. In the 22 weeks to 1 January like-for-like sales fell 1.4%.
chief executive Darcy Willson-Rymer, who took over in October, is in the middle of a review aimed at getting the business back on track.
He described the retail climate as "tough".
"Going forward, there is clearly more work to be done," he said in a statement.
"Despite a tough retail climate, we remain in line with the board's expectations."
Clinton Cards operates 630 Clinton-branded stores and 141 Birthdays UK stores.
In the year to 31 July it reported a loss of £10.7m.