// Ted Baker posts £23m loss before tax in the first half of its financial year
// This means that in the six months to August 11, pre-tax profits dropped 194%
// Ecommerce revenue fell 1.3% to £52.3m
Ted Baker has recorded a £23 million loss before tax in the first half of its financial year due to “very difficult trading conditions”.
This means that in the six months to August 11, Ted Baker reported a 194 per cent drop in pre-tax profits.
It said part of the reason for this involved a £11.8 million investment to overhaul its struggling Asian businesses, as well as the troubles of Debenhams and House of Fraser in the UK and Nordstrom and Bloomingdale’s in the US – department stores where Ted Baker had a significant presence with concessions.
It took a hit of £600,000 from the collapse of House of Fraser alone.
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The fashion retailer also slashed its dividend and warned full-year financials may fall behind those recorded last year.
Revenue slipped 0.7 per cent year-on-year to £303.8 million.
Basic earnings per share plummeted 207 per cent to see shareholders slump to a 46.1p loss per share.
Meanwhile, ecommerce revenue fell 1.3 per cent to £52.3 million, on top of a 2.5 per cent drop in overall retail sales to £214.5 million.
“The group’s performance has been impacted by very difficult trading conditions throughout the period, amplified by heightened levels of consumer uncertainty across many of Ted Baker’s global markets,” Ted Baker chairman David Bernstein said.
“If these trends continue, we will achieve a second half result below that of last year.”
Ted Baker chief executive Lindsay Page 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 ecommerce.
“However, we are not immune to these pressures which have impacted our financial performance during the first half of the year.
“We remain actively focused on cost control and driving further efficiencies.
“Despite the structural challenges and cyclical pressures on the industry, we remain confident in Ted Baker’s ability to navigate the market and further develop as a global lifestyle brand.”
The fashion retailer has had a difficult year after sexual harassment allegations were revealed against its founder and former chief executive Ray Kelvin earlier this year.
Page was appointed to replace Kelvin as chief executive with immediate effect following his resignation on March 4.
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