Ted Baker anticipates £5m Brexit costs as fourth quarter sales decrease

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ashion company Ted Baker has posted a 47% income slide for the last quarter, and warned that it assumes British isles shops will keep on being shut till the end of Might.

The company also said that subsequent the trade settlement involving the Uk and EU signed in late December, it anticipates up to £5 million of incremental charges associated with Brexit, “reflecting excess obligation and shipping and delivery costs partially offset by a new customs warehouse capability”.

The retailer faced a hard 2020 exactly where it had to temporarily shut outlets at numerous points for Covid-19 lockdowns.

It has also been impacted by much less need for occasionwear owing to various social activities remaining cancelled, these as weddings. Pre-Covid the fourth quarter would have involved the Xmas social gathering year.

Rachel Osborne, chief government of Ted Baker, said: “When we have produced encouraging strategic progress, investing above the fourth quarter was hard and heavily impacted by the Covid pandemic, top to the closure of quite a few of our merchants during the time period and a lack of need for outerwear and occasionwear about the festive time in unique.”

Osborne additional: “Looking ahead, we are taking a cautious organizing tactic and now believe that British isles merchants will remain closed until the conclusion of May adopted by a gradual recovery about the relaxation of the initially 50 percent.”

Group earnings in the 13 months to January 30 reduced by 47%.

In optimistic indications, the agency pointed to desire for its additional informal clothes give, and it reported the China, Hong Kong and Macau joint undertaking carries on to see sturdy gross sales growth.