Ted Baker warns on profit following difficult trading conditions
Fashion retailer Ted Baker has warned on profit after experiencing ongoing challenging trading conditions. The retailer is now expecting underlying pre-tax profit for the year to 25 January to come in at between £50 million and £60 million.
Ted Baker has also announced that group revenue increased by 3.8% in the 19 weeks to 8 June although total retail sales edged down 0.3%.
The retailer’s performance was impacted by “difficult and unpredictable” trading conditions in the period as well unseasonable weather across North America and a highly promotional retail environment across its global markets. Ted Baker said it expects some of these issues to continue to affect trading during the rest of the financial year. There were also problems with some of its Spring/Summer collections which have now been addressed.
Looking ahead, Lindsay Page, Ted Baker chief executive, said: “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.
“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.”
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