Home Business News Ted Bakers profits slump due to higher costs

Ted Bakers profits slump due to higher costs

by Mark Fitt Political Journalist
21st Mar 19 9:27 am

Highstreet retailer Ted Baker’s profits have slumped for 2018 as the company grappled with the scandal surrounding the founder to resign, along with the competitive environment.

The retailers pre-tax profit fell 26.1% to £50.9m in the 52 weeks to 26 January, the group’s revenue was 4.4% higher at £617.4m, due to sales across the UK and Europe.

The results have taken a toll on the balance sheet after a challenging year for the retailer.

The cost of the investigation into the former chief executive and founder, Ray Kelvin and exceptional items totalled £12.1m.

With the exceptional items stripped, the pre-tax profits dropped by 14.3% to £63m.

David Bernstein, executive chairman said, “Performance has been impacted by the very difficult trading conditions throughout the year, including competitive discounting across the retail sector, consumer uncertainty, the well-publicised challenges facing some of our UK trading partners, and the unseasonable weather across our global markets at different points throughout the period.

“Despite this challenging backdrop, Ted Baker continues to develop as a global lifestyle brand reflecting the strength of the brand, the design and quality of our collections and the passion and commitment of our talented teams across the world.”

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