Hunter, the British boot brand favoured by celebrities and festivalgoers, has said its profits fell in 2015 after the company invested in new stores, warehouse facilities and its workforce.

Underlying profits fell to £14.1m last year from £15.6m in 2014 as the brand pumped money into its first flagship store on Regent Street in London and opened a new outlet store at Bicester Village in Oxfordshire.

Founded in Scotland in 1856, the company holds two royal warrants. It is famous for its hard-wearing wellingtons and outerwear, and has capitalised on its popularity with celebrities such as Alexa Chung and Kate Moss.

Sales rose 19% in 2015 to £113.7m, and Hunter’s chief executive, Vincent Wauters, said the company was in a strong position despite a challenging retail backdrop in 2016, with new styles in footwear, outerwear and accessories performing well.

“We recognise that 2016 has presented a challenging retail environment in general, particularly in North America. We have invested to strengthen the brand fundamentals, in particular with the introduction of a seasonless core concept launching in October of this year.

“We have put particular focus on growing the Hunter team, building for the future by promoting from within and investing in new talent. The measures we have put in place in 2016 will put us in a strong position going into 2017, as we continue to grow and realise the brand’s true potential.”

Wauters said that sales at Hunter’s second global flagship store in Tokyo, opened in March, had been good so far.

Other investments over the year included the expansion of its warehouse and distribution facilities, and development of a global online shop.

The company has been majority-owned by funds managed by the private equity firm Searchlight Capital Partners since January 2012.