Ted Baker investors hope for good news
INVESTORS in Ted Baker will be hoping for some rare positive news to cheer about in its trading update this week after a dire year for the luxury fashion brand.
Shares in the UK clothing retailer have slid by more than 75 per cent since January in a year which has seen it post three profit warnings.
Michael Hewson, chief market analyst at CMC Markets UK, said the company had “lurched from one crisis to another” over the past two years.
The firm came under significant pressure after founder and chief executive Ray Kelvin resigned from the company in March following allegations of inappropriate behaviour towards staff.
Mr Kelvin had taken already taken a step back from activities at the business in December 2018 after allegations of misconduct involving “forced hugs” and ear-kissing. He has denied any wrongdoing.
Last week, the company’s shares plunged further after bosses uncovered that its inventory had been overstated by between £20m and £25m.
Ted Baker said it had brought in lawyers and independent accounts to assess the issue but insisted that it would have no cash impact and related only to previous years.
The company’s trading performance will be the focus of scrutiny on Wednesday, when the firm updates investors.
SHOWCASING NUMBERS: Retailer Ted Baker’s trading performance will be in the spotlight when it updates investors on Wednesday.