FASHION retailer Monsoon said tough trading conditions had left it with a glut of stock at the start of its winter sale.

Monsoon, which also owns Accessorize, reported a five per cent increase in like-for-like sales for the six weeks to January 7, but said that was a result of significantly higher than planned stock levels in the sale.

The announcement came as the company reported an eight per cent rise in pre-tax profits before exceptional items to £30.1m for the six months to November 26.

Chairman Peter Simon, who is in talks to buy the 24.6 per cent stake he and his family do not own, said in July that the outlook was uncertain and predicted a lack of consumer confidence in the high street.

He said: "We underestimated the very difficult trading conditions that ensued through the autumn season, when we experienced a decline in like-for-like sales until Christmas."

Same-store sales were four per cent higher during the first half. However, total sales rose 35 per cent to £228.1m when the impact of 47 stores bought from retailer Etam were included.

Monsoon was one of the leading lights of the retail sector last year as teenagers and young women continued to spend on fashion despite cutting back elsewhere. However, a slowdown over the summer proved it was not immune to the tough conditions experienced by many of its rivals.

The company increased its trading space by 30 per cent when it bought the former Etam sites in April. That increased the number of Monsoon and Accessorize outlets in the UK and Ireland to 388 by the end of the period.