Laura Ashley has seen a fall in like-for-like sales for the past five months compared with the same period last year due to "tough trading conditions".
Taking out the impact of new stores, sales at the home furnishings and fashion retailer were down 9.9% during the 20 weeks to 13 December.
Total sales, however, which include the nine new stores opened during the period, increased by 9.7%.
The company said it should meet its targets for the financial year.
The company blamed "the current economic climate combined with the effects of new store openings" for the drop in like-for-like sales.
"Although the outlook remains extremely challenging, we will continue to focus on increasing revenue generation... improving operational efficiencies, differentiating our product offering and continuing our store realignment programme," a management statement said.
The company also reported growth in its franchising and licensing network. Laura Ashley's Asian franchise partner has begun a programme to open 80 stores in China over the next five years.
Home accessories account for around 28% of sales at Laura Ashley, with furniture accounting for 26%, decorating for 24% and fashion for 22%.
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