{"id":166497,"date":"2020-06-01T07:51:00","date_gmt":"2020-06-01T07:51:00","guid":{"rendered":"https:\/\/www.theindustry.fashion\/ted-baker-looks-to-raise-95m-in-share-placing-as-profits-slump\/"},"modified":"2021-08-06T12:05:56","modified_gmt":"2021-08-06T12:05:56","slug":"ted-baker-looks-to-raise-95m-in-share-placing-as-profits-slump","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/ted-baker-looks-to-raise-95m-in-share-placing-as-profits-slump\/","title":{"rendered":"Ted Baker looks to raise \u00a395m in share placing as profits slump"},"content":{"rendered":"
Ted Baker is seeking to raise \u00a395m in a share placing after reporting a slump in underlying profits before tax from \u00a363m to \u00a34.8m<\/strong> in the year to 26 January 2020.<\/p>\n <\/p>\n The premium fashion and lifestyle brand had swung to a \u00a379.9m loss before tax compared to a profit of \u00a330.7m last year<\/strong> as it was hit by \u00a384.6m of non-underlying expenses, mainly comprising total charges of \u00a345.8m related to inventory, \u00a316.2m related to impairment of store assets, \u00a37.6m related to losses on the disposal of its Asian business and \u00a36.5m for legal and professional costs.<\/span><\/p>\n Total revenue was down 1.4% to \u00a3630.5m,<\/strong> (down 2.4% in constant currency) impacted by significant discounting, particularly in the UK, in response to weak consumer spending and channel shift to online, it said.<\/span><\/p>\n Retail revenues fell 4.6% (fell 5.4% in constant currency) to \u00a3439.9m<\/strong> comprising store s<\/span>tore revenues down 5.3% (down 6.3% in constant currency) to \u00a3321.2m and<\/span>\u00a0<\/span>e-commerce revenues down 2.5% (down 3.1% in constant currency) to \u00a3118.7m. \u00a0<\/span><\/p>\n Wholesale revenues increased by 9.6% (up 8.1% in constant currency) to \u00a3171.5m, benefitting from incremental footwear revenue. On a comparable basis (excluding footwear), wholesale revenues decreased 3.7%<\/strong> (decrease of 5.0% in constant currency) due to \"challenging trading conditions for trustees and territorial franchise partners\".<\/span><\/p>\n Licence revenues decreased 14.1% to \u00a319.0m. Underlying licence income increased 1.8%, adjusting for the company's acquisition of its footwear licence, which it bought back from Pentland in September 2018.<\/a><\/span><\/p>\n The results are the culmination of a tumultuous year for Ted Baker in which its founder and CEO Ray Kelvin was obliged to stand down<\/strong> due to staff harassment allegations, which he denied, followed by the departure of former COO and Kelvin's replacement as CEO Lindsay Page and chairman David Bernstein, after a string of profits warnings.<\/p>\n