The Bradford-based company said sales in the three months to Nov. 30 fell 0.3 percent by value and 6.8 percent by volume over 2016.

"We expect only modest growth in earnings over 2017," said the retailer, which, along many other British retailers, had warned about a dip in confidence among consumers.

UK consumer spending power is being squeezed as inflation rises and wage growth falters.

(Reporting by Rahul B in Bengaluru; Editing by Biju Dwarakanath)