×
42 610
Fashion Jobs
KOHLS
Staff Product Manager-Innovation
Permanent · Menomonee Falls
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Rapid City
KOHLS
Full-Time Loss Prevention Officer
Permanent · Las Vegas
KOHLS
Full-Time Loss Prevention Officer
Permanent · Victorville
KOHLS
Full-Time Loss Prevention Officer
Permanent · Bakersfield
BLOOMINGDALE'S
Division Sales Manager: Bloomingdale’s 59th Street Flagship, Nyc
Permanent · New York
SALLY BEAUTY CORPORATE
Outside Sales Representative - Professional Beauty
Permanent · Kansas City
CLARKS
Assistant Wholesale Marketing Manager
Permanent · Waltham
ADIDAS
Manager Outbound Operations
Permanent · Spartanburg
ADIDAS
Senior Manager, Performance Marketing - Membership (Digital)
Permanent · Portland
ADIDAS
Logistics Manager
Permanent · Pittsburgh
ADIDAS
Technical Manager Maker Lab
Permanent · New York
GAP
Senior Producer- Digital Operations – International Promotions
Permanent · San Francisco
GAP
General Manager- Macarthur Park
Permanent · Irving
HUDSONS BAY COMPANY (HBC)
Analyst, Supply Chain
Permanent · Brampton
PUMA
Analyst, Business Intelligence - Consumer Insights
Permanent · Westford
L'OREAL GROUP
Buyer - (Purchasing/Procurement/Indirect Sourcing)
Permanent · Berkeley Heights
DESIGNER BRANDS
Director, Marketing Advanced Analytics
Permanent · Columbus
THE REALREAL
Sales Analyst, Business Strategy And Analytics
Permanent · San Francisco
THE REALREAL
Authentication And Brand Compliance Lead
Permanent · Perth Amboy
OLD NAVY
Assistant General Manager, Merchandising - Crossroads at Baileys
Permanent · Falls Church
COTY
E-Commerce Key Account Sales Manager
Permanent · New York

Ted Baker profit warning as e-tail slows, N. America weather woes weigh on sales

Published
today Jun 11, 2019
Reading time
access_time 3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Ted Baker updates used to be brimming over with good news. But there's been little of that in recent periods and on Tuesday the fashion retailer talked about a “difficult trading period with ongoing external challenges impacting performance” in the 19 weeks up to June 8.


Ted Baker



The company said that “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.”

And it's expecting more of the same ahead for both its own stores and those of its trading partners, which means Tuesday also came  with a profit warning. The company is now expecting underlying pre-tax profits for the year ending January 25 to sit between £50 million and £60 million. The figure was £63 million in the previous year.

“This reflects the board's view of anticipated trading for the rest of the year, the positive impact of new product initiatives and planned cost efficiencies,” it said.

At least the company has managed to generate a headline sales rise in the 19-week period, although it was far from impressive. It said that group revenue rose 3.8%, or 1.9% in constant currency. But total retail sales, including e-commerce, fell by 0.3%, or a 1.8% drop in constant currency. That was despite its average retail square footage rising by 5.3%. Usually e-commerce is booming and able to take up the slack, but this time it rose only 2.4%, or an even smaller 1.2% in constant currency. Given that it now accounts for 26% of total retail sales (compared to 25.3% this time last year), e-commerce growth slowing means it can't seriously shift the dial on the company’s overall sales figure.

The company’s wholesale revenue, including acquisition revenue, rose 14.2%, or 11.4% in constant currency. But on a like-for-like basis, it was down 1.2% and a worse 3.6% in constant currency.

“The performance reflects 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,” it explained. But there was worse to come as it added that it “also experienced some challenges with our Spring/Summer collections,” although “these have been appropriately addressed.”

The company said that the period benefitted from incremental footwear revenue, following the acquisition of No Ordinary Shoes, which completed on January 1. 

But as a result of the highly promotional retail environment, both retail and wholesale gross margins were lower than last year.

And in light of the challenging start to the financial year, “management are actively focused on product initiatives and cost control.”

Other plans to drive a more dynamic performance include monthly product drops and speed-to-market projects that will start in the coming weeks. 

CEO Lindsay Page said of this: “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.

“As a team, 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.”

Copyright © 2020 FashionNetwork.com All rights reserved.