Ted Baker PLC said Thursday that it swung to a pretax loss in the first half of fiscal 2020, blaming weak consumer spending, macro-economic uncertainty and the shift toward e-commerce in the sector.
The British fashion and lifestyle brand TED, -37.33% said its pretax loss was 23 million pounds ($28.3 million) in the 26 weeks ended Aug. 10 compared with a profit of GBP24.5 million in the first half of fiscal 2019.
Revenue for the period fell 0.7% to GBP303.8 million. Retail sales, including e-commerce, were down 2.5%, while in the U.K. and Europe, sales fell 3.9%.
The board declared an interim dividend of 7.8 pence a share compared with last year’s 17.9 pence.
The company said it is actively focused on cost control and driving further efficiencies, and that despite the structural challenges and pressures on the industry, it remains confident that it can navigate the market and develop its brand further.
Additionally, the company said trading in the second half has started slowly, made worse by unseasonably warm weather in September which will affect full year outcome. If the trends continue, the company expects second half results to be below those of last year.