Tandem Group PLC (AIM:TND)'s shares dropped 9% following a mixed outlook in its AGM trading statement.
Despite strong growth in the retailer's e-mobility division, sales have seen an overall decrease of 26% compared to the previous year due to cautious buying behaviour among retailers and the impact of the ongoing cost of living crisis.
The toys, sports, and leisure division was notably affected with a 46% decline.
Chairman Steve Grant said: "Looking ahead, we anticipate that the remainder of 2023 will continue to present challenges for the industry and for the group.
"The current market conditions show no signs of abatement, and we anticipate further obstacles as increasing interest rates place additional pressure on the disposable income of households."
The shares fell 19p to 191p.