Ted Baker warned on challenging trading conditions in an update published on Tuesday.
The luxury retailer said ongoing consumer uncertainty and promotional activity resulted in “extremely difficult trading conditions”.
As a result, Ted Baker said that it now expects underlying profit before tax for the year to be with the range of £50-60 million.
The news sent shares plunging, with expectations proving significantly behind analyst expectations of £70 million.
The firm is set to report its interim results for the six months until 28 August in late October.
Lindsay Page, Chief Executive Officer commented:
“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.
We remain committed to the long-term development and expansion of Ted Baker as a global lifestyle brand. Over recent years, we have made a number of significant investments to ensure that the Group is well positioned to continue to adapt to structural changes in the retail sector.”
The warnings come at particularly turbulent period for the retailer, as it looks to distance itself from its founder and former chief executive Ray Kelvin amid misconduct allegations.
It also marks the brand’s second profit warning over the course of the last year, as challenging trading conditions also continue to bite.
Meanwhile, Quiz shares sunk after the clothing retailer reported a 97% fall in pre-tax profits, citing lower margins.
Ultimately, Many well known brands are feeling the pinch as the UK high street struggles to survive amid falling footfall and cautious consumer spending.
Shares in Ted Baker (LON:TED) are currently trading down -26.58% as of 13:15PM (GMT).