Ted Baker warns of "extremely difficult" conditions to generate profits

Ted Baker warned that his annual profits would fall short of London's expectations, as the British retailer said it was facing "extremely difficult market conditions," with shares falling by nearly a third in the beginning. of sitting.

The company said it now expects earnings for the year ended January 25, 2020 to be between £ 50 and £ 60 million, less than badysts' forecasts, exceeding £ 70 million. sterling and less than £ 63 million the year before.

Ted Baker, who named Lindsay Page as the new CEO in April, after his founder's departure after allegations of behavior, said that "the persistent uncertainty of consumers" had led to difficult market conditions, while she had also spent more money promotions.

The group recorded a 1.8% year-on-year decline in 19-week revenue at June 8 in constant currencies and a 1.9% increase in sales.

Stocks fell 29% early in the session in London, reaching their lowest level since the end of 2012.

He highlighted issues such as the extreme weather conditions in North America and the "highly promotional" retail environment around the world, which resulted in reduced margins. The group also stated that he had encountered "some challenges" with his spring / summer collections, without giving more details other than saying "these have been properly treated".

The retailer has repeatedly warned about profits, saying the situation was difficult, especially last March, blaming a similar mix of consumer uncertainty and promotional activity.

Mr. Page said the group is now focusing "tirelessly" on reducing costs and efficiency through its operations, including its supply chain.

"We are proactively addressing the challenges we face as an industry," she said.

Mr. Page is a 22-year veteran of the brand who served as General Manager at a sensitive time. The group's stock price has fallen more than 40% over the past year, and its founder, Ray Kelvin, has quit after accusations of inappropriate behavior, including a "stalling policy" with employees, accusations he denied.

In April, the company announced that its human resources policies would be "updated" following a review by the law firm Herbert Smith Freehills, which identified "areas for improvement."