Ted Baker swings to loss during ‘challenging half’

The fashion brand’s posted a loss of £23m during the 28 weeks to August 10, down from a £24.5m profit the same period the previous year.

Group revenue dipped 0.7% to £303.8m, down from £306m during the comparable period.

The group’s total retail sales dropped 2.5% to £214.5m with UK and Europe sales decreasing 3.9% to £141.3m. Retail sales in North America increased 3.1% to £63.7m; however, rest of the world retail sales fell 15.2% to £9.5m.

The struggling fashion retailer’s online sales fell 1.3% to £52.3m.

Ted Baker chief executive Lindsay Page said: “We are continuing to proactively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards ecommerce.

“However, we are not immune to these pressures which have impacted our financial performance during the first half of the year.

“Despite this, we have delivered a number of important strategic developments including reorganising our Asia operations to drive long-term growth, integrating the acquired footwear business and signing an important new product licence partnership for childrenswear.

“Our Autumn/Winter collections have been well received and we are excited about our new product initiatives including monthly product drops and speed-to-market developments.

“We remain actively focused on cost control and driving further efficiencies.

“Despite the structural challenges and cyclical pressures on the industry, we remain confident in Ted Baker’s ability to navigate the market and further develop as a global lifestyle brand.

“This confidence remains underpinned by the group’s flexible, omnichannel model, the continuing strength of the brand, and the skill, passion and commitment of our talented teams worldwide.”