The company said like-for-like sales in its 48 stores in the 26 counties reduced by 10.5% in the 13 weeks to March 27, while its stores in Britain saw sales increase by 5.5%.
Domino’s shares dropped 8% after the group, which has 672 stores in Britain and Ireland, said overall like-for-like sales growth had fallen to 4.2% from 10.5% a year ago.
Earlier this year Domino’s revealed that sales in the first seven weeks of its financial year had slowed to 4.7%, bringing an end to its run of double digit growth, but yesterday’s figures represent a further worsening in trading.
The group warned that future growth is likely to be impacted as it comes up against tougher comparatives in the next quarter.
Its Ireland business is being hit by a clampdown in consumer spending as the country suffers amid tough economic woes.
The results are the first time it has provided separated sales figures for Britain and Ireland in a bid to show investors that the British business, which represents 93% of sales, is still in growth.
Total store sales increased 11.2% to £132.3 million (€150.6m).
But Domino’s claimed it was well placed to deal with the challenging environment, with plans to open new stores and fresh marketing initiatives up its sleeve.
The group opened eight stores in the quarter and said it is on target to open 60 in the full-year.
The group’s strong growth last year was helped by the introduction of its Two For Tuesday buy-one-get-one-free promotion a year ago.
It also benefited from the World Cup.
Domino shares fell as much as 11%, and closed down 4.2% to 427.2p.