In the three months to the end of September, the retailer saw its like-for-like sales fall 4.5%.
Asda’s sales dropped 4.7% in the previous quarter, its worst performance in its history.
Sales volumes remain under pressure from discount supermarkets, with Asda chief executive Andy Clark stating that the UK grocery market remains “challenging”.
However, he also added that the supermarket had the financial strength and clear plan to sustain the company through this period, while it takes appropriate and considered action to further strengthen its competitive position.
It is now the worst performing of the Big Four supermarkets.
Meanwhile Asda’s US parent Walmart reported that net profit had slumped to $3.3bn for the three months to the end of October from $3.7bn a year earlier. Its total revenues dropped 1.3% in its third quarter to $117bn compared with $119bn a year earlier.
However, once currency fluctuations were taken into account, Walmart reported stronger than expected third-quarter sales of $122bn, up 2.8% on a year earlier. Revenues at Walmart’s US stores were also lifted by a 1.5% rise in sales at stores open more than a year.