Ted Baker’s losses deepen as coronavirus hits retailer
Fashion retailer Ted Baker’s losses deepened in the first half of the year as coronavirus took a heavy toll on the UK firm’s business.
Ted Baker’s reported operating loss before tax was £86.4m in the six months ended 8 August, down from a loss of £23m in the same period a year earlier. Underlying losses before tax were £38.4m, down from £5.6m a year earlier.
The drop came after reported revenue roughly halved to £169.5m from £313.3m a year earlier.
Ted Baker is among the many UK retailers to have been hit hard by the coronavirus pandemic. Forced store closures have been particularly problematic for those with less strong online businesses.
Chief executive Rachel Osborne said it had been “an unforgettable period mostly for the wrong reasons”. She said the struggling retailer has “had to navigate a challenging demand environment while also addressing the problems of our past”.
Last year, Ted Baker founder Ray Kelvin resigned after he was accused of misconduct.
Despite these challenges, Osborne said today: “I am very confident we have the right strategy in place with Ted’s growth formula and that the Ted brand remains strong.”
She said she expects “landlords to adapt to the new economic reality which means Ted Baker will have structurally lower and more variable rent”.
Ted Baker’s online offering strengthened in the first half. E-commerce revenues rose 42 per cent to £74.2m. Yet sales per square foot excluding e-commerce slumped by 68 per cent to £115m.