The Fragrance Shop is to "optimise" its stores after the Covid-19 pandemic "accelerated the transition" to online shopping, "severely weakening" footfall.
The Manchester-headquartered retailer issued the update in its accounts for the year to March 31, 2020, which have been published 15 months after the end of its financial year.
The documents, which were signed off by the board on June 15 and only made available to the public on Companies House on June 29, show its turnover decreased from £113.9m to £88.4m in the period.
However, its pre-tax profits increased from £3.7m to £4.2m.
On how the last 15 months has impacted the business, a statement signed off by the board said: "Trading performance in physical store locations [was] significantly impacted in the first quarter of the new financial year given [the] blanket closure and subsequently via weakened footfall to all retail destinations.
"Government support has enabled the company to retain its employees and help offset some of the store losses.
"Given the multichannel nature of the wider group, the success to date of online operations has helped offset and mitigate the losses incurred from the physical operations and as a result the group is well positioned to navigate the challenges and future uncertainty that this virus presents."
On the 12 months to March 31, 2020, the business added: "The directors are satisfied with the performance of the company.
"During the period, the company has opened five new stores, operating from an estate of 198 stores and online at the period end.
"The directors expect the UK retail environment to remain competitive; the pandemic has accelerated the transition to online shopping, severely weakening footfall to physical retail destinations.
"This presents challenges to the ongoing viability of certain stores however the company will look to optimise its portfolio in light of market conditions wherever possible going forwards."
