UK clothing and accessories retailer Ted Baker posted a slight decline in group revenue for the 16-week period between August and December as lower wholesale sales overshadowed retail sales growth.
The fashion chain also said it had appointed a law firm to conduct an independent external investigation regarding claims against its chief executive officer and founder Ray Kelvin relating to his habit of hugging business colleagues.
Analysts said the company's marker as a global lifestyle brand leaves it far better placed than most in the more challenging retail space that currently persists.
Ted Baker, which operates 544 stores, concessions and outlets worldwide, had been focusing on its fast-growing online and wholesale businesses to counter retail sluggishness as consumers clamp down on spending.
Group revenue fell 0.2% for the 16-week period from August 11 to December 1.
However, wholesale sales fell by 6.5% due to the earlier timing of deliveries in the first half of the year.
Total retail sales including e-commerce rose by 2.3%.
In the UK, Europe and the East Coast of America, trade was hurt by the unseasonal weather at the start of the period, Ted Baker said.
"Trading in the UK continues to be impacted by the well-publicised challenges facing some of our trading partners," it added.