Foyles has revealed profits slumped 45% in its last financial year, recording a profit fall for the third year running.
The bookseller’s pre-tax profit fell to £83,294 for the year to June 30, while sales dipped 2.5% to £22.9m.
Foyles, which operates six stores, blamed the fall on continued disruption to its Charing Cross flagship from the construction works at the Tottenham Court Road Underground station development.
Foyles said this was exacerbated further by “below-budget” trading during the London Olympics.
It added that despite having a store at Westfield Stratford City, which is located next to the Olympic Park, spectators were directed away from the shopping centre.
But Foyles said since the end of the Olympics, the retailer has recorded “significant” improvements and strong Christmas sales.
It added that its other four branches are trading “satisfactorily”.
Foyles said it “made every effort to mitigate the effect of the downturn” with appearances by bestselling writers, including Salman Rushdie, Martin Amis and Caitlin Moran.
The retailer said it is focused on its new store opening at Waterloo Station, which will launch in late January, and its flagship store relocation in late spring to 107 Charing Cross Road.
Foyles chief executive Sam Husain said: “The vibrant spaces, the layout of the floor plates which include a larger gallery and café, and the general ambience of the new store present an opportunity to introduce new retail practices that will make a visit to this bookshop a necessary experience for Londoners and visitors alike.”