The Home Retail Group has warned its profits won’t reach its previous estimates.
The firm said its pre-tax profits for its financial year will be between 250m and 255m, down from its 263 to 293m forecast.
The ‘weak’ video game market and ‘challenging’ audio sector have been blamed for the drop. The firm also cites the drop in consumer spending on inflation, tax rises and unemployment.
"There are clear signs of further pressures on consumer spending, with recent trading conditions, particularly at Argos, proving to be more difficult and volatile than we anticipated," said Chief Executive Terry Duddy in a statement.
"Against the backdrop of the challenging economic environment, and taking into account our most recent trading, we are now planning with increased caution for the year ahead."