Shares in British fashion retailer Ted Baker have fallen by 35% after it posted losses of over £23m.
The announcement was expected, as back in June the firm issued profit warnings to investors, blaming tough trading conditions, fierce competition and unseasonable weather.
The losses were even more shocking when compared to the previous year when Ted Baker reported profits of £24.5m.
The firms’ sales in the first half were down across every region the company operates in, including a 3.9% fall in the UK and Europe to £141.3m.
Lindsay Page, Chief Executive, said: “We are continuing to pro-actively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards e-commerce. However, we are not immune to these pressures which have impacted our financial performance during the first half of the year.
“Despite this, we have delivered a number of important strategic developments including reorganising our Asia operations to drive long term growth, integrating the acquired footwear business and signing an important new product licence partnership for childrenswear. Our Autumn/Winter collections have been well received and we are excited about our new product initiatives including monthly product drops and speed to market developments.
“We remain actively focused on cost control and driving further efficiencies. Despite the structural challenges and cyclical pressures on the industry, we remain confident in Ted Baker’s ability to navigate the market and further develop as a global lifestyle brand. This confidence remains underpinned by the Group’s flexible, omnichannel model, the continuing strength of the brand, and the skill, passion and commitment of our talented teams worldwide.”