Lakeland achieved a rise in both sales and profit last year but has warned that trading has been much harder in 2011.
The 55-store chain saw turnover increase from £141.9m to £147.9m in the year to December 31 2010, while pre-tax profit was up £600,000, from £10.1m to £10.7m.
However, the retailer has scaled back its UK expansion plans in the face of tough trading conditions, saying it will now open five stores in 2011 instead of the six it had hoped to launch. It will press ahead with its plans for two more stores in the Middle East.
Lakeland told The Telegraph that sales of baking products had been particularly strong last year.