Fashion chain New Look underlying operating profit slumped from £162.7m to £98m in the year to March 26 as the retailer suffered from “significant internal disruption”.
Group adjusted EBITDA tumbled from £249.4m to £190.2m.
Group like-for-likes declined 5.5% while total sales were flat at £1.46bn.
E-commerce sales grew 41.4%, and now represent 4% of group sales.
New Look said a strategic review is under way to restore product and value architecture.
New Look executive chairman Alistair McGeorge said: “Clearly these are disappointing results, reflecting a business that was suffering significant internal disruption against a backdrop of a harsh and deteriorating consumer economy.
“Additionally, we allowed our price architecture to drift upawards, which undermined our competitiveness and relative value positioning in the marketplace.
“New Look is now going through a transition to ensure we are firmly focused on delivering, with greater consistency, what our customers expect – great fashion at great prices.
“This is a business with a strong brand and fantastic people and we are confident that we have put in place the right first steps to ensure New Look is returned to sustainable growth.”
2011 has been a turbulent year so far for New Look. In March founder Tom Singh returned to run the business after chief executive Carl McPhail exited.
Singh then hired former Matalan boss McGeorge as executive chairman.
The retailer, which attempted an IPO last year, has suffered from further exits including Nick Cross, the chief marketing officer, who left the business last month after less than six months in the role.
New Look said it would continue to roll-out its upgrade and refurbishment programme to its stores.
It added that it was the top retailer in value and volume terms for the under 35’s and the number two retailer in value and volume terms in women’s footwear according to data from Kantar Worldpanel for the 52 weeks ending April 17.