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.”

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