Commodities

Ted Baker warns on full-year; hit by weak demand, hefty discounting

Credit: REUTERS/© Neil Hall / Reuters

Ted Baker Plc on Thursday warned yet again that its full-year profit would be hurt, as warmer weather in September, sharp discounting across the industry and tepid consumer demand takes its toll on British retailers.

Adds details on results, executive quote, expected share movement

Oct 3 (Reuters) - Ted Baker Plc TED.Lon Thursday warned yet again that its full-year profit would be hurt, as warmer weather in September,sharp discounting across the industry and tepid consumer demand takes its toll on British retailers.

The company, which installed new executives recently, posted a first-half pretax loss and cautioned that second-half results would be lower if the hurdles persist.

"Trading conditions have been characterised by unprecedented and sustained levels of promotional activity across the sector with, in several cases, distressed discounting from brands and retailers and heightened competition," Ted Baker Chairman David Bernstein said.

Shares of the company are seen opening 5% to 20% lower, according to premarket indicators by traders.

The company, which had earlier flagged an "extremely difficult" start to the year, reported a pretax loss of 23 million pounds ($28.27 million), compared to a profit of 24.5 million pounds a year ago, for the six months ended Aug. 10.

Ted Baker reported its first drop in full-year profit since 2008 in March, as traditional brick and mortar apparel chains suffered from online competition and slack consumer spending.

The company said in June it expects full-year underlying pretax profit to be in the range of 50 million pounds to 60 million pounds.

($1 = 0.8136 pounds)

(Reporting by Tanishaa Nadkar and Pushkala Aripaka in Bengaluru; Editing by Bernard Orr)

((tanishaa.nadkar@thomsonreuters.com; Within UK +44 20 7542 1810; Outside UK +91 80 6749 1691; Twitter: @TanishaaNadkar;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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