Full Year Outlook & Trading Update10 Dec 2019 07:14
FULL YEAR OUTLOOK
Expectations for the period ending 25(th) January 2020 have been reduced to a minimum profit before tax of GBP5m, with a potential outcome of up to GBP10m dependent on Christmas trading and final year-end review.
The Board has considered:
-- Trading over November and the Black Friday period was below expectations, with lower than anticipated margins and sell through.
-- An anticipation that difficult trading conditions will continue, and therefore it is appropriate to take a more cautious outlook for the remainder of the financial year, which includes the key trading months of December 2019 and January 2020.
-- Non-trading Foreign Exchange movements relating to the translation of intercompany balances will in future be reported as a non-underlying item.
The last 12 months has undoubtedly been the most challenging in our history, yet the Ted Baker brand remains well supported by our customers, partners and trustees and we appreciate their ongoing support.
We are taking the necessary immediate actions to address underperformance and improve efficiencies across the wider Group and are confident that these will return the Group to a stronger position and continue the Brand's long-term development.
IMMEDIATE ACTIONS
The Board has instigated an immediate action plan to improve the performance of the Group:
1. COST REVIEW: independent consultants Alix Partners have been engaged to conduct a wide-ranging review of the Group's operational efficiency, costs and our business model.
2. ASSET REVIEW: a review of the Group's assets commenced in October and is progressing to the expected timetable.
3. DIVIDEND SUSPENDED: While the immediate actions are being implemented the Board has determined that dividend payments will be temporarily suspended. The Board recognises that dividend is an important part of our returns to shareholders and will look to resume payment as soon as it is appropriate to do so.
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