Comet is struggling along with other High Street chains

Comet will fall into the red with a "small loss" in the first half of the year, said Kesa.

But strong growth in France helped Kesa, Europe's third biggest electrical retailer, post a 5.6% rise in first-quarter sales.

Kesa gets 75% of operating profit from its French unit.

Elsewhere on the continent, Kesa's reported satisfactory sales at its businesses in Holland, the Czech Republic and Slovakia.

Digital growth

Comet's performance in the first quarter reflects the difficult market conditions in the UK Jean-Noel Labroue, Kesa chief executive See Kesa's share price

Same-store sales at the French Darty business grew 3.6%, while back in the UK Comet suffered a 2.2% like-for-like drop.

Turnover at Comet fell by 1.6% in the three months to 30 April, with particularly poor sales of 'white' goods such as fridges, while sales of digital products continued to improve.

However, digital products attract lower profit margins than white goods.

"Comet's performance in the first quarter reflects the difficult market conditions in the UK," said chief executive Jean-Noel Labroue.

"The company has already reduced its cost base and will take further action if these conditions persist."

In March, Kesa reported an 8% rise in pre-tax pre-exceptional profits to �193.7m for the year to 31 January.