The company, which has 38 stores around the UK, has reported pre-tax earnings of £3.4 million for the year ended December 31, 2012, accounts that have just become available at Companies House show.
Fraser Hart, which was acquired by Dublin-based Anthony Nicholas Group in 2007, posted profits of £3.7m the year before.
The fall in profits came as Fraser Hart, which has four stores in Glasgow, one in Stirling and one in Edinburgh, booked a 7% rise in turnover to £69.4m, up from £64.9m the year before.
Mark Naughton-Rumbo, group finance director at Anthony Nicholas, declared the company's satisfaction with the results, which he said reflected its continuing strategy of expanding its store estate across the UK and investing in "the luxury end of our offer". Two new stores were added to the Fraser Hart portfolio over the year, in Stratford and Newbury, with Mr Naughton-Rumbo stating the company remains on the look out for acquisitions. Funding for acquisitions will come from the group's operations.
Mr Naughton-Rumbo said the retailer was more optimistic than at the start of its last financial year, which he said stemmed from a "more robust, more consistent level of performance" in its stores. He said: "The outlook for once is more optimistic than pessimistic, and it has not been like that for a very long time."
Fraser Hart's latest accounts show the retailer employed an average of 457 staff over the year, up from 440 for the year before. It said 401 staff were employed in sales roles, with 56 working in administration.
In the previous year the retailer had 387 sales staff and 53 in administration jobs.
Overall staff costs rose to £10.2 million, compared with £9.6m in 2011, with wages and salaries totalling £9.2m, up from £8.6m.