Ted Baker expected to report £65.2 million loss
Fiona Cincotta June 9, 2021 3:25 AM
Ted Baker will report on Thursday, 2 weeks late. Expectations are for a grim year. Will online numbers give some insight into the recovery?
When: Thursday 10th June after being delayed for two weeks due to covid disruptions on the audit process.
Ted Baker is due to release final results on Thursday, and they are expected to be pretty grim. Expectations are for a full year operating loss of £65.2 million as revenue halved across the pandemic.
Whilst the pandemic has been rough for many retailers, Ted Baker has struggled more than other owing to issues of being a bricks and mortar retailer and secondly owing to its focus and reliance on occasion wear and formal clothing.
But even before the pandemic Ted Baker was already suffering versus high street competitors and online rivals. Ted Baker’s online offering was insufficient. The pandemic and subsequent lockdowns accelerated a shift towards online shopping, highlighting Ted Baker’s inadequacies and failure to establish itself as an online presence if not before the pandemic then in the early days of the pandemic.
Sign of recovery strength
Even though lockdown should now be in the rear-view mirror investors will be looking to see how pandemic inspired changes in strategy are holding up. Ted Baker eventually invested heavily in its digital platform. Investors will be keen to see if heavy investment in the online sales offering will be enough to help the store on its road to recovery.
Where next for Ted Baker share price?
Ted Baker share price has seen a slow choppy recovery from the pandemic low in July of 60p. The latest leg of the recovery has been in play since late February, forming a series of higher highs and higher lows from 90p before running into resistance at 220p in mid May.
The price has been trending lower since then finding support at 170p today’s low. Whilst 170p horizontal support hold and the share price remains above the 50 & 100 sma on the daily chart buyers can remain hopeful. However, a move above the descending trendline and 190p is needed for buyers to gain momentum.
On the flip side, a move below 170p and the 50 sma at 162p could see the sellers pick up traction and head towards 150p.
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