11th Jun 2019 08:40
LONDON (Alliance News) - Ted Baker PLC on Tuesday reported moderate growth in revenue in the recent 19 week period, thanks to acquisitions, but said it expects annual profit to decline as trading conditions have been "extremely difficult" in the year-to-date.
The fashion retailer now anticipates its underlying pretax profit for the year to the end of January 25, 2020, to be in the range of GBP50 million to GBP60 million. In financial 2019, which ended on January 26, Ted Baker reported pretax profit before exceptional items of GBP63.0 million.
The FTSE 250 stock was trading 25% lower on Tuesday morning at 1,005.42 pence a share.
Revenue in the 19 weeks from January 27 to Saturday last week grew by 3.8% compared to the same period last year. On a constant currency basis, revenue climbed by 1.9%.
Ted Baker said it benefited form "incremental" footwear revenue, following the acquisition of No Ordinary Shoes Ltd and No Ordinary Shoes USA LLC, both in January. Excluding these acquisitions, total revenue for the period was down 1.1% year-on-year, or down 2.9% in constant currency.
The luxury clothing retailer noted that its performance reflected "difficult and unpredictable" trading conditions, unseasonable weather experienced across North America, and the highly promotional retail environment across its global markets.
In addition, Ted Baker said it experienced "some challenges" with its spring/summer collections.
"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," explained Chief Executive Lindsay Page.
Total retail sales, including e-commerce, decreased by 0.3% during the 19-week period, or by 1.8% in constant currency, despite average retail square footage rising by 5.3% to 443,036 square feet.
E-commerce sales, meanwhile, increased by 2.4%, or by 1.2% in constant currency. Wholesale sales were 14% higher, or 11% in constant currency.
"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," added Page.
The company will announce its results for the six months to August 10 in early October.
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