Electrical retailer Dixons, which has 11 outlets in Ireland, including Currys and PC World, has warned of disappointing results following Christmas sales.
Earlier, more than £500 million was wiped from its stock market value after it announced that trading in December fell below expectations, mainly because of weaker sales of games consoles, hi-fi and extended warranties.
In a statement this morning, Dixons said people had held off making large purchases in the uncertain economic conditions.
Dixons' chairman, Sir John Collins, said he was cautious about the near future.
Sir John, who took over from veteran retailer Sir Stanley Kalms in September, said: "Trading in the UK over the Christmas period has been below our forecasts.
Trading statements containing a breakdown of figures for Ireland are expected to be released later in the day.
Finance director, Mr Jeremy Darroch said Dixons' pre-tax profits for the year to the end of April were now expected to fall below the £320 million to £335 million forecast by the City.
"We still have four months of trading to go but we will be off that number," he said.
He said the group was now "more cautious about the outlook" after seeing a slowdown in consumer spending on the high street.
He added that one reason for the slowdown was that 2001 had benefited from a round of interest rate cuts, but that impetus "wasn't there this year".
PA