The struggling retailer has seen its shares take a plunge after the a profit warning was issued, which was due to exchange rates. The exchange rates have been volatile since the Brexit vote, however it seems that they were only partly to blame for the new profit forecasts from the retailer.
The retailer still hasn’t fully recovered from when Ray Kalvin quit as CEO after ‘forced hugging’ claims were brought to light after employees started to report what exactly had been going on behind closed doors at Ted Baker HQ.
Ted Baker issued a profit warning and stated that earnings are forecast to be more than £10m lower than previously expected. The pre-tax profit for the year to 26 January is expected to come in around £63m, as opposed to previous projections of £73.8m.
The group said foreign exchange fluctuations accounts for around £2.5m of the change, mainly linked to weaker sterling. Meanwhile, the company said higher spending on new systems had affected the balance sheet.
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