Camera retailer Jessops said today it was confident of rebuilding profits after slashing stock levels under a restructuring plan.
The group, which saw losses of almost £70 million in its last financial year, said like-for-like sales were 5.1% lower in the 25 weeks to March 22.
But Jessops said good management and the closure of 81 stores had cut stock levels to £29 million from £51 million a year earlier - a reduction it said had been achieved without affecting product availability.
It is hopeful the second half of the financial year, which includes the busy summer trading period, will see further benefits following the launch of "new and innovative" products.
Executive chairman David Adams said the company faced "a difficult and uncertain environment".
However, he added: "The board remains confident that the group is on the right track to build sustainable profitability."