Ted Baker shares plunge 12pc on drop in profits

Shares in Ted Baker were down almost 12 percent in early morning trading.

The fashion retailer blamed “challenging trading conditions” for the 3.2 percent fall in pre-tax profits.

Although the group saw revenue increase by 3.5 percent to £306 million for the six months through to the end of August, profits fell to £24.5 million.

Retail sales in the UK and Europe were up just one per cent to £147.1 million. UK wholesale revenue increased by 10 percent to £54.9 million.

Similarly to Moss Bros, Ted Baker has blamed the unusually warm weather over summer and The Beast from the East for lower than expected sales over the year. 

Ted Baker saw the benefits of shoppers moving more online and posted a rise in e-commerce sales by 24 percent to £53 million.

Despite the fall in sales in the groups brick and mortar stores, Ted Baker is planning to roll out two new stores in the UK, two in Germany, one in France and three in the US.

David Bernstein, the non-executive chairman, said: “We have a very clear strategy for the continued expansion of Ted Baker as a global lifestyle brand across both established and newer markets. Our flexible business model ensures that our customers have multiple channels to engage with the brand. Our growing e-commerce business, underpinned by stores that showcase the brand, mean that we are well positioned to deal with the structural changes in an evolving retail environment and continue Ted Baker’s long-term development.”

He added: “The board is mindful of the uncertainties in its markets over the second half of the year, but remains focused on making further progress for the full year. We intend to make our next trading update, covering the period since the start of the second half of the financial year, in early December.”

Shares in the group (LON: TED) are currently trading down 10.23 percent at 2.072,00 (1046GMT).