Ted Baker slumps to half year loss amid tough trading

Ted Baker said it is confident in its ability to navigate the market
Ted Baker said it is confident in its ability to navigate the market
0
Have your say

Fashion brand Ted Baker has slumped to a £23m loss in the six months to August 10 following restructuring at its Asia businesses, heavy promotions in the UK and the scandal that led to the resignation of founder and chief executive Ray Kelvin.

Sales fell 0.7 per cent to £303.8m - below the retailer's expectations - and the company warned if current trading conditions persist, the second half of the year will also be weaker.

Sales at Ted Baker were down across every region, including a 3.9 per cent fall in the UK and Europe to £141.3m.

In North America, the group's sales fell 3.1 per cent and the rest of the world was down 15.2 per cent.

Online sales also fell 1.3 per cent to £52.3m, although the company's wholesale business rose 4 per cent to £89.3m.

Chief executive Lindsay Page said: "Despite the structural challenges and cyclical pressures on the industry, we remain confident in Ted Baker's ability to navigate the market and further develop as a global lifestyle brand."

Ed Monk, associate director at Fidelity Personal Investing’s share dealing service, said: “It was another wardrobe malfunction at Ted Baker, with half year numbers today showing a pre-tax loss of £23m.

"That includes exceptional costs of £17.4m - £2m of which has arisen from the fallout of misconduct allegations made against the previous CEO.

“The outlook from here remains tough and the company warned the second half had also started badly. If that continues then full year profits will be worse than last year.

“Ted Baker pointed to heavy discounting among fashion retailers as a factor behind the falling sales. Investors have already seen the share price plunge this year and the results today show why the market is cautious.”