Ted Baker share price: what’s the latest ahead of its Christmas trading update?

The British fashion retailer will unveil its Christmas trading update next week, with investors hoping for a sales boost after the company issued a profit warning in the wake of its CEO stepping down in December.

Ted Baker will unveil its Christmas trading update on January 9, with investors hoping the company will benefit from a sales boost after the it issued a profit warning ahead of the festive period.

The British fashion retailer saw its share price fall more than 13% to 346p on December 10 after scrapping its dividend payments and issuing a profit warning in the wake of then CEO Lindsey Page and chairman David Bernstein both stepping down.

However, since then the stock has recovered the ground it lost, with it trading at 430p a share as of 15:15 GMT on Monday, with a strong Christmas trading update capable of driving its share price higher.

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Ted Baker downgrades full-year guidance

The departures in early December came alongside a trading update that saw the retailer downgrade its full-year guidance.

The company now expects pre-tax profit for the year to come in between £5 million - £10 million (dependent on Christmas trading). Analysts had previously expected pre-tax profit to come in at around £27 million.

‘An anticipation that difficult trading conditions will continue, and therefore it is appropriate to take a more cautious outlook for the remainder of the financial year, which includes the key trading months of December 2019 and January 2020,’ the company said.

The company also admitted that the last 12 months have been ‘the most challenging’ in its history.

‘We are taking the necessary immediate actions to address underperformance and improve efficiencies across the wider group and are confident that these will return the group to a stronger position and continue the brand's long-term development,’ the company added.

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Analysts pessimistic about the Ted Baker share price?

Analysts from Peel Hunt, HSBC and Goldman Sachs all downgraded their target prices for Ted Baker in December in response to its profit warning, with the three banks issuing targets of 300p, 345p and 390p respectively.

Based on the stock trading at 430p a share, analysts from the three banks believe that the Ted Baker share price has a potential downside of between -9% and -30%.

It is worth noting that the stock has performed well since its profit warning and that a strong Christmas trading update could see analysts change their outlook in January.

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