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Ted Baker lowers outlook amid exit of CEO Lindsay Page

By Prachi Singh

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Business

Ted Baker has announced that expectations for the period ending January 25, 2020 have been reduced to a minimum profit before tax of 5 million pounds, with a potential outcome of up to 10 million pounds dependent on Christmas trading and final year-end review. The company lowered its profit outlook while announcing resignations of two senior executives, including CEO Lindsay Page and Executive Chairman David Bernstein.

Ted Baker reports trading below expectations

The company said in a statement that trading over November and the Black Friday period was below expectations, with lower than anticipated margins and sell through. Anticipating that difficult trading conditions will continue, the company has decided 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 last 12 months has undoubtedly been the most challenging in our history. We are taking the necessary immediate actions to address underperformance and improve efficiencies across the wider group.”

As part of the company’s immediate action plan to improve the performanceTed Baker has appointed independent consultants Alix Partners to conduct a wide-ranging review of the group’s operational efficiency, costs and our business model. The company’s board has also temporarily suspended dividend payments.

Group revenue decreased 0.3 percent or 1.2 percent in constant currency to 203.8 million pounds for the 17-week period to December 7, 2019 and organic basis, group revenue declined 3.1 percent or 3.9 percent in constant currency. The company continued to experience challenging trading conditions in the UK as a result of weak consumer spending, macro-economic uncertainty and a backdrop of elevated promotional activity. On an organic basis, total retail sales decreased 4.8 percent or 5.5 percent in constant currency. The company said, September sales were adversely affected by unusually warm weather in the UK and Europe. E-commerce sales decreased 0.7 percent or 1.4 percent> However in North America, Ted Baker own site sales increased 28.9 percent in constant currency.

On an organic basis, wholesale sales increased 1.9 percent or 0.6 percent in constant currency. Ted Baker expects a decline in organic wholesale sales in the mid to high single-digit range in constant currency for the full year, reflecting the challenging trading conditions impacting both UK and North America trustees as well as our territorial licence partners across the world.

Lindsay Page steps down as Ted Baker CEO

Ted Baker further said that the company’s board has accepted Lindsay Page’s resignation and that Rachel Osborne has agreed to become Acting Chief Executive Officer with immediate effect. The company added that search for a new chief executive officer will commence in January 2020.

Page joined the group in 1997 from Arthur Andersen prior to the company’s IPO. When Page joined the company, Ted Baker had six shops and one concession in the UK and a turnover of 14 million pounds. Alongside the brand’s founder, Ray Kelvin CBE, he played a key role in Ted Baker’s expansion into a truly international brand with a presence in 50 countries and took over the chief executive’s role after Kelvin stepped down following allegations of “forced hugging” against him.

Commenting on Page and David Bernstein’s exits from the company, Sharon Baylay, Acting Chair, commented: “The board would like to recognise and thank Lindsay for his significant contributions to Ted Baker over the last 22 years. Lindsay played a key role throughout the development of Ted Baker into an international brand. I would also like to thank David for his contribution to the board of Ted Baker, as a non‐executive director, non‐executive chairman and, most recently, executive chairman.”

Picture:Ted Baker media gallery

Lindsay Page
Ted Baker