Ted Baker Plc warned yet again that its full-year profit would be hurt, as warmer weather in September, sharp discounting across the industry and tepid consumer demand takes its toll on British retailers.
Ted Baker Plc warned yet again that its full-year profit would be hurt, as warmer weather in September, sharp discounting across the industry and tepid consumer demand takes its toll on British retailers.
The company, which installed new executives recently, posted a first-half pretax loss and cautioned that second-half results would be lower if the hurdles persist.Shares of the company are seen opening 5% to 20% lower, according to premarket indicators by traders.
“Trading conditions have been characterised by unprecedented and sustained levels of promotional activity across the sector with, in several cases, distressed discounting from brands and retailers and heightened competition,” Ted Baker Chairman David Bernstein said.
The company, which had earlier flagged an “extremely difficult” start to the year, reported a pretax loss of 23 million pounds ($28.27 million), compared to a profit of 24.5 million pounds a year ago, for the six months ended Aug. 10.
Ted Baker reported its first drop in full-year profit since 2008 in March, as traditional brick and mortar apparel chains suffered from online competition and slack consumer spending.The company said in June it expects full-year underlying pretax profit to be in the range of 50 million pounds to 60 million pounds.
