Ted Baker has posted a steep decline in its full-year profits despite increased sales, which acting boss Lindsey Page attributed to “difficult trading conditions.”

The fashion retailer posted a 14.1% fall in profits before tax and exceptional items to £63m in the 52 weeks to January 26, as pre-tax profit slumped 26% to £51m.

Group revenue during the period was up 4.4% to £617.4m bolstered by a 20.4% rise in online sales to £121.7m.

Ted Baker’s wholesale sales increased 4.8% to £156.5m in the year.

The fashion retailer’s sales across the UK and Europe rose 4.6% overall to £315m, while sales across North America rose 4.7% t £125.7m.

In contrast, sales across the rest of the world fell 4.7% to £20.3m.

The business  opened two new stores in the UK, five in the US, one in Spain and one in China during the period.

The investigation by Herbert Smith Freehills into the conduct of former chief executive Ray Kelvin, who resigned earlier this month following allegations by staff of inappropriate hugging, is ongoing.

The retailer said: “We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted Baker’s culture are maintained, appropriate changes are made.”

Speaking about the full-year results, Page said: “Ted Baker has continued to grow across each of the brand’s distribution channels despite difficult trading conditions across a number of the group’s global markets.

“This resilient sales performance again reflects the strength of the brand, the talent of our teams, and the quality of our collections.

“We have made a number of significant investments to ensure that Ted Baker remains well positioned for long term development.

“We are excited by our spring/summer collections and the board remains focussed on identifying opportunities in the evolving retail market to further expand the brand.”