I can see it is not doing very well lately but perhaps it is all due to the âhuggingâ scandal and it will soon recover?
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For me, Ted Bakers quality is going downhill super super fast. I used to really like their stuff, I had a wallet and a laptop bag fall apart in 1 / 2 months. I donât think theyâre the brand they used to be.
I donât have specific insight in Ted Baker but generally speaking retail sales are down at the moment.
Ted Bakerâs been hit along with the whole retail industry but it had held up better than others, that is until the recent hugging scandal! I think this dominates the share price now until they announce the findings of the independent investigation.
There is definitely an argument to buy the dip as recent results show that the PR disaster didnât appear to effect sales (or at least not yet). A large proportion of sales are outside the UK (around 40%), so overseas they wonât hear these allegations. If the investigation results arenât as negative as articles suggest then thereâs upside.
That being said thereâs a major risk that more stories of harassment emerge (which isnât a nice thought) and the board sack Ray Kelvin. Would people buy a brand associated with him afterwards? It might make the Ted Baker company look responsible for sacking him but it would also put people off. He also owns around a third of the shares, so if he started selling then it would really hurt the share price.
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@Rob14 thanks for the good analysis. I totally agree and I think it is better to wait a bit to see what the final trend would be.
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So Ted Bakerâs shares are down today but apparently the âhuggingâ scandal isnât affecting sales
The retailerâs Christmas trading update last month showed a 12.2% rise in sales.
Looks like the CEO could do with a hugâŠ
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The Chief Executiveâs left now. I donât remember ever hearing any âvisionary leaderâ comments about them so perhaps this wonât affect the companyâs performance long term.
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I havenât invested in Ted Baker but on the surface think the brand would be strong enough to pull through this scandal?
Will try and do some research into this company during the week!
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They issued a profit warning because of âextremely difficult trading conditionsââŠ
EDIT: In other news, Ted Baker now offers a high dividend yield of ~6% at the current prices. Although theyâll more than likely change their dividend amount in the future.
Should this be on Snapshot of High Dividend Yields on the Freetrade App?
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Ouch!
At 4pm Iâm buying some shares as well. At least I will certainly be buying into the dip. Looks like a risk of buying into a failing company though.
Iâm waiting for it to fall further.
Funnily, this is my pick for the Stock Prediction League - Jan 2020
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In the 340âs nowâŠtime to buy?
Personally I donât see it being a mega success again. The high street is dying in my opinion
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Yes all been a downward spiral since then, someone may make a bid to buy though
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Theyâve extended their 30% off period till tonight and sent loads of emails to those who are signed up! Looks like theyâre pretty keen to get cash through the doorâŠ
They also opened a new store!
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High Street stores often are generational. They are popular for a time period. Then they succumb to the high cost of running a store in the UK. You need to ship so much stuff to pay for a months rent, rates and wages.
Warren Buffet says never buy dying businesses. Itâs so rare to see a failing business turned around and become successful. Itâs not like there arenât other businesses out there that are:
a) making profit
b) have a great potential for growth
Retail for me is just too high risk.
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