Ted Baker shares slide after profit warning
By James Young | 11th June 2019
Shares in Ted Baker lost more than a quarter of their value in morning trading after the company issued a profit warning.
Having previously forecast that profits would be in excess of £70million, the fashion chain, who have an outlet in Gloucester Quays, reported to the London Stock Exchange that they will fall below that level.
Citing a "difficult trading period with ongoing external challenges impacting performance", the company said that profits for the year ending January 20, 2020 would eb in the range of £50 to £60million.
Total retail sales, including e-commerce, fell by 0.3 per cent in the 19 weeks between January 27 and June 8.
In the statement, the company said: Ongoing consumer uncertainty in a number of key markets and elevated levels of promotional activity across our global markets have resulted in extremely difficult trading conditions during the financial year to date."
Lindsay Page, Chief Executive Officer added: "Ted Baker remains an outstanding brand and, underpinned by the strength of our flexible business model, including a relatively low number of own stores that showcase the brand, we remain confident in our long-term growth prospects.
"As a team, we are proactively addressing the challenges we face as an industry.
"Several of our new product initiatives will commence imminently and we are confident in our collections for the coming season.
"We are relentlessly focused on achieving cost efficiencies as well as further cost savings throughout the business.
We remain committed to the long-term development and expansion of Ted Baker as a global lifestyle brand.
"Over recent years, we have made a number of significant investments to ensure that the Group is well positioned to continue to adapt to structural changes in the retail sector.
Shares fell in response to the news and by midday were trading 26 per cent down on last night's close.
Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.