Profit before tax at luxury footwear brand Manolo Blahnik dropped 18.5% year on year to €6.6m (£5.9m) in the year to December 2018.
Turnover was down by 1% from €34.8m (£31m) in 2016/17 to €34.3m (£30.5m).
The company put the profit drop down to continued investment in its retail, wholesale and online operations, as part of its five-year investment strategy. It is now entering the fourth year.
Additionally this year, Manolo Blahnik has prepared itself to acquire its North American operations, which were formerly licensed out, but will be run in-house as of 1 January 2020.
It also opened stores in London and Geneva, launched staffing and marketing programmes, expanded its ecommerce platform and improved its commercial and financial management.
Despite the drop, CEO Kristina Blahnik said the company was in “continued financial health” and that profitability remained “well ahead” of forecast.
She added: “These are very successful results in a planned period of increased and sustained investment.
“We are only three years into our five-year development strategy, which will include further infrastructure commitments. Not least as we prepare to bring our brand’s North American operations in-house and complete the post-acquisition integration of the Calzaturificio Re Marcello factory in Italy.”