Paperchase has blamed it called a “difficult” year for the slump in its annual profits.
The high street chain raked in £9.1 million in EBITDA for the year ending January this year, a 16.2 per cent drop compared to the year before.
However, the stationery, greetings card and gift retailer still managed to record a sales growth of 4.3 per cent to £119.2 million in its UK business after like-for-likes inched up by 0.7 per cent.
Meanwhile, Paperchase’s international division plateaued, growing only 0.4 per cent during its fiscal year.
The brand’s ecommerce business was the highlight in its financial report, recording a 30.7 per cent surge in revenues.
Paperchase chief executive Timothy Melgund pointed to the economic challenges brought about from the Brexit vote for what was a “difficult year” for the company.
He also warned that “significant headwinds” have continued into its current financial year.
Nonetheless, this has not stopped Paperchase from investing in store expansion – opening 16 new stores during the year and plans underway to launch its first two stores in the US next year.
“Our investments in digital are bearing fruit and we continue to see strong growth online,” Melgund said.
“Internationally the brand is well placed for further growth, despite a strategic decision last year to withdraw from select concession and wholesale partners.
“We continue to develop relationships with partners across the globe that complement the Paperchase brand and we are excited about our first two US standalone stores next year.”