Ted Baker reels from £23 million loss

Shares in Ted Baker fell 35 per cent in trading yesterday (Thursday) after the fashion brand announced a £23 million pre-tax loss in its half year trading results.

The drop in profits was attributed to poor weather and challenging trading conditions, compared to profits of £24.5 million last year.

Group revenue was down 0.7 per cent to £303.8 million, while retail sales including e-commerce were down 2.5 per cent to £214.5 million. Global e-commerce sales were also down 1.3 per cent to £52.3 million.

Sales fell across the world - with the exception of the US market - with UK and Europe down 3.9 per cent to £141.3 million. Sales in the rest of the world were down 15.2 per cent to £9.5 million.

However, the company's wholesale business was up four per cent to £89.3 million, driven by footwear acquisition. The gloomy outlook came after the company posted a profit warnings in February and June.

Founder Ray Kelvin resigned in March following allegations of a culture of “forced hugging” at the company.

Lindsay Page, Ted Baker’s chief executive, said: “We are continuing to proactively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards e-commerce.

“However, we are not immune to these pressures which have impacted our financial performance during the first half of the year.”

He added: “This confidence remains underpinned by the group's flexible, omnichannel model, the continuing strength of the brand, and the skill, passion and commitment of our talented teams worldwide.”

    Share Story:

Recent Stories


Supermicro and NVIDIA’s AI Solution for Retailers
To find out more: click here

Poundland significantly reduces antisocial behaviour, aggression and shoplifting with Motorola Solutions VT100 body cameras
Retail should not be a high-risk occupation. As a company, we are focused on listening to our colleagues and customers to help them with the issues they are facing in-store and so far, the feedback on our body cameras has been excellent. They act as a great visual deterrent, help to de-escalate situations and overall, this project has significantly aided our goal to make the retail environment safer.

For further information on Motorola Solutions’ retail security products, including body cameras, click here.

Advertisement