Electrical retailer Dixons had more than £500 million wiped from its stock market value after it warned disappointing Christmas sales would hit profits.
The group's shock statement said trading in December fell below expectations, mainly because of weaker sales of games consoles, hi-fis and extended warranties.
Dixons, which also owns the Currys, PC World and The Link chains, said people had held off making large purchases in the uncertain economic conditions.
The update provided fresh evidence UK consumer confidence was sagging.
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: "We expect the results for this financial year will be below market expectations."
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