Ted Baker posts drop in full year profit
Fashion retailer Ted Baker has posted a 26.1 % drop in full year pre-tax profit to £50.9 million after facing difficult trading conditions in some of its markets.
The company said its performance in the year to 26 January was impacted by competitive discounting in the retail sector, consumer uncertainty and unseasonable weather in its global markets at different times during the year.
Group revenue rose by 4.4% to £617.4 million while retail sales climbed by 4.2% to £461 million. Sales in the UK and Europe increaed by 4.6% while sales in North America and Ted Baker’s rest of the world business both climbed by 4.7%.
Ted Baker acting chief executive Lindsay Page said: “Ted Baker has continued to grow across each of the brand’s distribution channels despite difficult trading conditions across a number of the group’s global markets. This resilient sales performance again reflects the strength of the brand, the talent of our teams, and the quality of our collections.”
The year also saw Ted Baker’s founder and chief executive Ray Kelvin take a voluntary leave of absence after allegations of inappropriate behaviour were made against him. The company said: “We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted Baker’s culture are maintained, appropriate changes are made.”
Kelvin stepped down from his role on 4 March.
Ted Baker operates 560 stores and concessions across the world, including 201 in the UK, 122 in Europe, 130 in North America, 98 in the Middle East, Africa and Asia, and nine in Australasia.
Looking ahead, Page said: “We have made a number of significant investments to ensure that Ted Baker remains well positioned for long term development. We are excited by our Spring/Summer collections and the Board remains focused on identifying opportunities in the evolving retail market to further expand the brand.”
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