Ted Baker share price: where next as shares fall 45% after suffering £23 million loss?
The British fashion retailer's share price continues to fall after announcing its third profit warning of the year last week.
Ted Baker saw its shares fall by more than a third last week after suffering a £23 million loss in its first-half of trading which will likely see it downgrade its full-year profit guidance.
The British fashion retailer has seen its share price fall by more than 45% since the announcement last week, with the company’s stock down 68% since January to 484p as of 14:00 on Monday.
This is the first time the company has reported a half-year loss since its IPO on the London Stock Exchange back in 1997.
Analysts expect Ted Baker to downgrade full-year guidance
The company’s lack lustre results will likely see it revise its full-year profit expectations from the £50 million - £60 million it previously gave at the start of 2019.
Ted Baker blamed its poor performance on unseasonably warm weather and challenging market conditions as well as ‘unprecedented and sustained levels of promotional activity across the sector globally’.
Ted Baker sees sales slide
The fashion retailer saw sales decline by 2.5% to £308.8 million in its first six months of trading. The company’s sales were significantly impacted by the demise key UK trading partners like Debenhams and House of Fraser, with both department stores falling into administration earlier this year.
However, analysts blamed Ted Baker’s comparatively higher prices in a highly competitive retail market for its disappointing performance.
‘Our primary concern is that the Ted brand is losing relevance in its target market and the price point is turning customers off,’ John Stevenson, equity research analyst at Peel Hunt told The Guardian.
‘Certainly, market conditions are tough, but others are performing much better,’ he added.
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