BENGALURU: Shares in Ted Baker shed more than a third of their value on Thursday, after the British fashion retailer’s second profit warning in four months amid what new boss Lindsay Page called the worst business conditions in decades.
The warning underlines the challenges facing Page, who became CEO in April, after misconduct allegations against Ted Baker founder and top shareholder Ray Kelvin. The company also tapped a new finance chief last week.
Ted Baker and other high-street retailers face several challenges: weak consumer demand brought on by political uncertainty related to Brexit, heavy discounting and the shift to online shopping.
“We have faced probably the most difficult trading conditions that I can ever recall in 30 years,” Page told Reuters.
Ted Baker, known for suits, shirts and dresses with quirky details, posted a first-half pretax loss partly due to unseasonably warm weather in September.
“Ted Baker has been thrown onto the market’s discount pile after a shocker of a first half results statement,” said AJ Bell’s investment director Russ Mould.
“Today’s first half update from Ted Baker is a massive disappointment to those who felt that the company’s problems were behind it,” said CMC Markets analyst Michael Hewson.
