Fashion retailer Ted Baker has suffered in a harsh trading environment and now expects full-year profits will come in at between £50m and £60m.
The retailer posted group sales up 3.8% – or 1.9% in constant currency – for the 19 weeks to June 8. Total retail sales including ecommerce slipped by 0.3%, or 1.8% in constant currency, as tough conditions took a toll.
Ted Baker reported: “Ongoing consumer uncertainty in a number of key markets and elevated levels of promotional activity across our global markets have resulted in extremely difficult trading conditions during the financial year to date.
“The board anticipates some of these external factors will continue to impact trade for the group and its trading partners across the remainder of the financial year.”
The performancewas blamed on ”difficult and unpredictable trading conditions, unseasonable weather experienced across North America in the early part of the period and the highly promotional retail environment across our global markets”.
Ted Baker said it ”also experienced some challenges with our Spring/Summer collections and these have been appropriately addressed”.
Wholesale perormance was better than retail - sales climbed 14.2%, or 11.4% in constant currency.
The retailer said management are ”actively focused on product initiatives and cost control” and that monthly product drops and speed to market projects will start soon. There will also be focus on sourcing and supply chain efficiencies.
Chief executive Lindsay Page said: “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.
“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.”