// Ted Baker expects to report a decline in annual profits
// The retailer experienced a challenging year due to higher costs and the high street gloom
// Its founder Ray Kelvin resigned earlier this month following the harassment scandal
Ted Baker is expected to report a decline in its annual profits this Thursday after a challenging year.
The British fashion retailer saw its founder and chief executive Ray Kelvin resign earlier this month amid higher costs and challenging high street conditions.
After a profit warning at the end of February, Ted Baker predicts its pre-tax profits for the financial year ended January 26 to be at £63 million, compared to the previous year’s estimation of £73.8 million.
Last year, Ted Baker’s annual profits before tax came in at £68.8 million.
Foreign trading has affected the retailer’s profit by up to £2.5 million, mainly because of the drop in the pound sterling, compared to the dollar and euro.
Meanwhile, Ted Baker is currently embroiled in a sexual harassment scandal with allegations against now-former chief executive Ray Kelvin.
This prompted a change in Ted Baker’s leadership for the first time in 30 years following Kelvin’s resignation earlier this month.