The Works has reported a revenue decline of 7.8% to £88.9m in the 26 weeks to 25 October.
The stationery and book retailer posted a pre-tax loss of £4.3m over the period, which was down from a loss of £8.5m in the same period the previous year.
Trading was impacted by the first Covid-19 lockdown restrictions, according to the retailer.
However, when the first seven weeks of enforced restrictions were excluded, overall like-for sales increased by 10.6%.
In its trading update for the 11 weeks to 10 January, The Works revealed total sales declined by 24.8% year-on-year.
Gavin Peck, the retailer’s chief executive, said: “Our interim results and trading over the crucial Christmas period reflect a robust performance given the impact of store closures as a result of Government restrictions.
“When open, our stores have performed well and our online proposition has continued to resonate strongly, supported by the investment we made to increase online capacity.”
He added: “With our stores temporarily closed, we are, once again, focussed on maximising sales through our online operations and carefully controlling costs whilst ensuring that we are able to reopen safely when restrictions allow.
“We are in a strong financial position to face the current challenges and we remain confident in the medium-term growth potential of the business, particularly given the evident ongoing relevance of our proposition.”