Topps Tiles has seen a 1.9% decrease in like-for-like revenues for the 13 weeks to July 2.
Over the same period, total revenues declined by 1.6%, against a 2.5% decline in 2010.
A statement from the company released today said: "We do not expect to see any material change to trading patterns over the final quarter of the financial year. The business will continue to focus on achieving the efficiencies necessary to drive improved gross margins which will help to offset some of the impact of the challenging environment."
The company currently trades from 313 stores in the UK, and aims to have 320 outlets by the end of the financial year.