Profits at high street retailers Comet and Carpetright have plunged as consumers cut back on big-ticket products.
Kesa-owner Comet, which also operates electricals stores in France, said trading conditions were particularly bad in the UK and Spain, where the property markets have slumped.
The group reported an operating loss of £101.7 million over the six months ending October 31st.
Jean-Noel Labroue, chief executive, said: "The economic climate across Europe has created very tough trading conditions for all our businesses, particularly in the UK and Spain."
Meanwhile, Europe's biggest floor covering specialist Carpetright said underlying profit for the 26 weeks ending November 1st fell to £8.8 million from £27.2 million last year – a drop of over 67 per cent.
Chairman and chief executive Lord Harris of Peckham, said: "As I have previously said, I expected my 51st year of selling carpets to be extremely challenging, and it has proved to be the case.
"Market conditions and consumer confidence have declined through the first half, leading to reduced profits year on year due to lower sales."
Lord Harris added the company expects results for the full year will be "significantly below" the current consensus.
Both Kesa and Carpetright are still paying their shareholders an interim dividend, albeit at a reduced rate.
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