Ted Baker’s pre-tax loss widens due to COVID-19 restrictions in fiscal H1

Ted Baker plc (LON: TED) said on Monday that its pre-tax loss in the fiscal first half widened on the back of a nearly 50% annualised decline in revenue. The company attributed its dovish performance to the ongoing Coronavirus pandemic that has so far infected 1.7 million people in the United Kingdom and caused over 61 thousand deaths.

Ted Baker opened more than 4% up on Monday and gained another 2% in the next hour. On a year to date basis, the retailer’s shares are now about 60% down in the stock market despite an over 100% growth since mid-July. If you are interested in investing in the stock market online, you’ll need a broker – here’s a comparison of the top few to make selection easier for you.  

CEO Rachel Osborne’s comments on Monday

Ted Baker expressed confidence that its balance sheet remained stronger than expected despite the H1 loss. CEO Rachel Osborne commented on the financial update on Monday and said:

“Even with some of our legacy issues being amplified by COVID-19, our balance sheet is materially stronger than we have envisaged this early in the plan and operational cash flow will be positive for the full-year. The main operational risk (from Brexit) remains the flow of goods into the UK through the ports.”

In the six months that concluded on 8^th August, the British lifestyle brand recorded £86.4 million of pre-tax loss on Monday. In comparison, its loss was capped at a much lower £23 million in the same period last year. Ted Baker partnered with Hero (virtual shopping messaging app) last week to offer virtual shopping experience to its customers.

Ted Baker raised £95 million of equity earlier this year

In terms of revenue, Ted Baker reported £169.5 million in the first half versus the year-ago figure of a much higher £313.3 million. In a bid to shore up finances amidst the pandemic, the retailer raised roughly £95 million of equity earlier this year. It also overhauled its top management to cut costs in 2020.

Ted Baker also confirmed on Thursday that its turnaround plan that is likely to span over three years will deliver annual savings worth £31 million versus a lower 27 million that it had estimated earlier.

Ted Baker performed largely downbeat in the stock market last year with an annual gain of more than 70%. At the time of writing, it is valued at £260.66 million.