The recent Central Line closure and the introduction of congestion charging has hit fashion group Forminster's trading in central London.
Forminster, which holds the UK licence for Kooka', warned that 'margins are likely to be reduced in the current season because of lower than anticipated sales and increases in markdowns'.
For the 52 weeks to March 1, Forminster recorded a pre-tax profit of just over£1 million on turnover of£39.8 million.
Spring/summer 2002 season like-for-likes were 14 per cent ahead, but slowed to 4 per cent for autumn/winter.
The retailer said that its 'conservative' expansion policy continues.