 has warned on the challenging trading conditions, exacerbated by the heavy snow. The group's chief executive, Ray Kelvin,){kind=link}
Retailer Ted Baker (LON: TED) has warned on challenging trading conditions, exacerbated by the heavy snow.
The group’s chief executive, Ray Kelvin, said that the bad weather had deterred shoppers from updating their wardrobes with the new Spring line.
Following Kelvin’s warning, shares in Ted Baker plunged 13 percent on Thursday, wiping over £140 million off the value of the fashion retailer.
“The recent unseasonal weather across Europe and the east coast of America has had an impact on the early part of trading for spring/summer,” said Kelvin. “We anticipate that external trading conditions will remain challenging across many of our global markets.”
Despite the tumble in shares, Ted Baker saw a successful year. The group posted a 12.3 percent rise in pre-tax profits to £69 million.
“We are a brand, we’re not a high street retailer. Everything has been falling into place with our licensing business, wholesale and retail and that bodes well,” said Kelvin, who put the success down to the improved website and use of technology.
“We’ve got new platforms, we’ve got new warehousing, we’ve got new logistics, we’ve got new systems, things we’ve been working on for the last seven years. So everything is shiny new.”
It is not all positive on the high street, with Moss Bros (LON: MOSB) issuing a stark profit warning. Fashion retailer New Look approved a plan that will cut 980 jobs and close 60 shops with a company voluntary arrangement (CVA).
Charlotte Pearce, an analyst at GlobalData, said: “While the latest news of struggles at Moss Bros, New Look, Mothercare (LON: MTC) and Carpetright (LON: CPR) has further ignited concerns over the state of retail in the UK, Ted Baker’s latest results provide a glimmer of hope as the premium lifestyle brand continues to build on its successes.”
“By generating a decent proportion of sales from international markets, Ted Baker will be more protected considering the tough UK retail climate,” she added.