Ted Baker has issued a profit warning after being hit by “extremely difficult” trading conditions, heavy discounting and consumer uncertainty across key markets.
The retailer said as a result of the challenges it now expects full-year profits to be in the range of £50m to £60m.
Group sales were up 3.8% – 1.9% on a constant currency basis – in the 19 weeks to 27 January. Total retail sales, including ecommerce, fell by 0.3% during the same period. Wholesale revenue increased by 14.2%.
Chief executive Lindsay Page 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.
“As a team, we are proactively addressing the challenges we face as an industry. Several of our new product initiatives will commence imminently, and we are confident in our collections for the coming season. We are relentlessly focused on achieving cost efficiencies as well as further cost savings throughout the business.”
Page was appointed as chief executive officer in April following the conclusion of an investigation into allegations of misconduct against founder and former CEO Ray Kelvin.
The former Ted Baker group finance director was appointed acting CEO after Kelvin’s resignation in March and later took on the top job in a formal capacity.