Disney Store losses widened in the year to October 1, 2011 as it invested in the launch of its websites in France and Germany.
The retailer made a loss of £3.7m, up from £1.4m the previous year.
However, sales increased 7.7% to £120.1m as a result of Disney film releases in the period – including Tangled, Cars 2 and Pirates of the Caribbean 4 – revamped stores, and strong online growth.
Disney Store directors said they were “satisfied” with the performance, according to documents filed at Companies House.
A spokeswoman declined to give an update on current trading but said profit last year dipped as a result of an increase in fulfilment costs as the retailer shipped stock overseas to online customers from its UK distribution centre.
“The cost of sales has gone up so profit is down,” she said. “There has been an increase in costs because we brought fulfilment in-house and the German and French websites are fulfilled from our UK distribution centre.”
The UK distribution centre also services new stores that launched in Belgium, Denmark and the Republic of Ireland in the year, also affecting the bottom line.