ashion firm Ted Baker has posted a 47% revenue drop for the closing quarter, and warned that it assumes Uk retailers will keep on being shut right until the finish of May perhaps.
The enterprise also reported that following the trade arrangement among the Uk and EU signed in late December, it anticipates up to £5 million of incremental expenditures associated with Brexit, “reflecting added responsibility and delivery costs partly offset by a new customs warehouse capability”.
The retailer confronted a difficult 2020 wherever it experienced to briefly shut stores at several points for Covid-19 lockdowns.
It has also been impacted by considerably less demand from customers for occasionwear owing to numerous social events becoming cancelled, this kind of as weddings. Pre-Covid the fourth quarter would have bundled the Christmas celebration period.
Rachel Osborne, main executive of Ted Baker, explained: “Though we have produced encouraging strategic progress, buying and selling over the fourth quarter was tricky and closely impacted by the Covid pandemic, foremost to the closure of numerous of our outlets all through the interval and a deficiency of demand from customers for outerwear and occasionwear more than the festive period in specific.”
Osborne additional: “Looking ahead, we are using a careful preparing technique and now suppose that United kingdom merchants will stay closed until finally the conclusion of Might followed by a gradual recovery around the relaxation of the to start with 50 %.”
Team profits in the 13 weeks to January 30 lowered by 47%.
In optimistic symptoms, the firm pointed to need for its far more relaxed clothing provide, and it explained the China, Hong Kong and Macau joint venture carries on to see sturdy revenue progress.