Lounge Underwear has reported a 33% drop in pre-tax profit to £5.5 million despite sales increasing by 6% to £68 million. The drop in profits was attributed to the retailer's expansion of its physical stores in its latest financial year which saw it open four new stores across the UK.

The four new store openings marked the retailer's first permanent physical stores-one at Westfield White City London in September and one in Manchester's afford centre, Trinity Leeds and Cabot Circus in Bristol. The retailer announced last July it aimed to open eight new stores within a year.