Card Factory Plc warned on profits on Friday as it pointed to weak consumer confidence and soft high street footfall.
The company, which sells greetings cards and gifts, said the pressures facing the UK consumer have been well publicised over recent months.
"It is an inescapable fact that these pressures have impacted consumer confidence and shopping behaviour, contributing to soft high street footfall," it said.
"Those conditions have persisted as we moved into our most important trading period, leading to a UK store sales performance which is lower than our previous expectations."
Assuming current trading trends persist over the remaining seven weeks of its financial year, Card Factory now expects to deliver full-year adjusted pre-tax profit of between £55m and £60m.
Previously, it had guided to mid-to-high single-digit percentage growth in adjusted pre-tax profit for FY26, from £66m.
The group said progress on its long-term strategy has continued through the period, including effective execution of its 'Simplify and Scale' productivity and efficiency programme, as it continues to mitigate ongoing high inflation impacting UK retail businesses.
"Performance of our other businesses, including those in the Republic of Ireland and North America remain in line with our expectations," it said, adding that the integration of Funky Pigeon remains on track.
"The board remains confident in the group's long-term strategy. The share buyback programme will continue and the board anticipates declaring a progressive full-year dividend, in line with its capital allocation policy."