Ted Baker expects shops to stay closed until May

The company said its three-year transformation plan, which is focused on online operations, cost savings, and revitalising the brand, was making good progress. File picture: Sasko Lazarov/RollingNews.ie

Fashion brand and retailer Ted Baker expects its UK stores to stay closed until the end of May due to Covid-19 restrictions, and has reported a 47% fall in fourth-quarter revenue, citing lockdowns and weak Christmas demand.

“Looking forward, we are taking a cautious planning approach and now assume that UK stores will remain closed until the end of May followed by a gradual recovery over the rest of the first half,” CEO Rachel Osborne said.

The pandemic has been the latest blow for the struggling fashion retailer, which has been hit by multiple profit warnings, several management changes and an accounting scandal since founder Ray Kelvin stepped down as CEO in 2019 after misconduct allegations, which he denies.

“Ted Baker is facing the perfect storm. Its brand is synonymous with wedding-guest, occasion, and workwear, which is not what people buy during a pandemic. Added to that is the group’s lack of presence in out-of-town retail parks, which is where footfall has shifted,” Hargreaves Lansdown analyst Sophie Lund-Yates said.

The company said its three-year transformation plan, which is focused on online operations, cost savings, and revitalising the brand, was making good progress.

Ted Baker's shares were down nearly 9%.

• Reuters