Fashion chain Jigsaw handed £493,000 to workers in 2015 as part of a profit-sharing deal.
The retailer has set up an employee ownership deal under its chief executive Peter Ruis, who joined the firm from John Lewis in 2013.
Employees who were with the retailer for over a year were given at least one share in the company, and on Christmas Eve in 2015 received a dividend of £400 per share.
Total dividends paid out, which were also shared out with the management team, came to £1.6m, according to accounts filed at Companies House for the year ending 1 October 2016.
UK profit rose 11 per cent to £6.2m and group sales were up eight per cent to £95m for the year.
Writing in the retailer's strategic report, Ruis said: "In these tough economic times, we would not have been able to achieve these results without the hard work, commitment and passion of all our colleagues."
He highlighted the current economic risks facing the company, saying that "economic conditions and confidence" might impact shoppers' willingness to spend, adding that there was "inherent uncertainty" about the level of consumer demand.
However, Jigsaw is still seeking to expand both its physical and online offering. Last week, it announced that it will be setting up shop in the new King's Cross development.