UK lifestyle brand Ted Baker saw its share price slide 5.5% in morning trading after cautioning on a challenging global trading environment looking ahead.
The warning came despite the retailer booking a 12.3% increase in annual pre-tax profits to GBP68.8m (US$97.5m) from GBP61.3m a year earlier.
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“The recent unseasonal weather across Europe and the East Coast of America has had an impact on the early part of trading for spring/summer and we anticipate that external trading conditions will remain challenging across many of our global markets,” the company said.
Group revenue climbed 11.4% for the year ended 27 January to reach GBP591.7m, while retail sales rose 10.4% to GBP442.5m.
In the UK and Europe, Ted Baker reported sales of GBP301.1m, an increase of 7.7% year-on-year. In the US and Canada, sales were up 16.2% to GBP120.1m. E-commerce sales, meanwhile, jumped 39.8% to GBP101.1m.
Chief executive Ray Kelvin hailed a year of “continued progress” in expansion for the company, adding: “The strength of our brand and business model means we remain well-positioned to continue the group’s momentum and long-term development.
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By GlobalData“We have a clear strategy for growth across both established and new markets which is underpinned by our controlled, multi-channel distribution as well as the design, quality and attention to detail that are at the heart of everything we do.”
Charlotte Pearce, retail analyst at GlobalData, believes Ted Baker’s attention to e-commerce and its focus on its multichannel strategy will enable it to stand out in a crowded market in 2018.
“The retailer continues to make strategic steps to support its future growth and development, particularly online, as it has recently moved to a single European distribution centre in the UK and is integrating an enterprise resource planning (ERP) system, which will improve efficiency across the business. Offline, Ted Baker continues to invest in both new and existing stores, helping to ensure it remains a destination for shoppers to visit.”
