Ted Baker cautions on profits amid currency movements

The fashion retailer and brand said pre-tax profit for the year ending January 26 is now expected to be in the region of £63m.

Ted Baker said its bottom line had been hit by foreign exchange movements in the final week of its financial year, which had hindered profitability by around £2.5m.

The business added that systems and warehousing transitions in the US have resulted in an “unanticipated” £5m write-down in the value of its stock.

Ted Baker also said upgrades to its systems allowed it to identify additional product costs of £2.5m that arose during the second half of the year. However, it said it was “confident” that the upgrades now provide “robust controls to prevent a recurrence”.

The company will unveil full-year results on March 21.