Go Outdoors made a £2.6m loss despite a 25% sales surge for the year to January 29, 2012 as the retailer invested in its supply chain.

The loss compares to £5.2m profit the previous year. But sales grew 24.6% to £143.7m as the outdoors specialist opened 10 stores in the year.

Go Outdoors finance director Chris Morgan said: “The company’s investment in supply chain strengthening will offer a significant positive impact on operating costs this year.”

The company’s net debt was almost halved to £10.6m in the period.

The retailer has opened four stores since the year end and plans to open another new store in Milton Keynes next year.

Morgan added that it has doubled the number of employees to over 1,400.

Go Outdoors is currently seeking a new chief executive after founder John Graham stepped down from the role earlier this month to take another position at the retailer focusing more on product.

Earlier this month, Go Outdoors appointed former Mothercare retail director Jeff Fagan as its retail director.