Dixons Retail, Europe's number two electricals retailer, forecast full-year profit around the bottom end of market expectations after Christmas sales were hit by December's adverse weather.
The company, which runs the Currys and PC World chains in Ireland and the UK, UniEuro in Italy, Elkjop in Nordic countries and Kotsovolos in Greece, said it expected underlying profit before tax in the range of £100-110m sterling in fiscal 2011.
Dixons said sales at stores open over a year fell 2% in the 12 weeks to January 8, its fiscal third quarter.
'We remain cautious about the economic outlook across our markets,' the firm said.
Dixons, which makes all its profit in the second half, is two and a half years into a turnaround plan that has focused on selling underperforming businesses, cutting costs, revamping stores, opening larger stores and improving product ranges and service.
The programme has generally been well received by analysts, but Dixons' share price has fallen by 40% over the last year.
Investors are concerned about macro-economy headwinds, competition from supermarkets and pure-play internet retailers, and the arrival in Britain of US electricals giant Best Buy.
