Ted Baker 👕 - TED

@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 Baker’s shares are down today but apparently the ‘hugging’ scandal isn’t affecting sales

The retailer’s Christmas trading update last month showed a 12.2% rise in sales.

Looks like the CEO could do with a hug…

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The Chief Executive’s left now. I don’t remember ever hearing any ‘visionary leader’ comments about them so perhaps this won’t affect the company’s performance long term.

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I haven’t 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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23

:eyes: :grimacing: They issued a profit warning because of “extremely difficult trading conditions”…


EDIT: In other news, Ted Baker now offers a high dividend yield of ~6% at the current prices. Although they’ll 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 I’m 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.

I’m waiting for it to fall further.

Funnily, this is my pick for the Stock Prediction League - Jan 2020

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In the 340’s now…time to buy?

Personally I don’t 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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They’ve extended their 30% off period till tonight and sent loads of emails to those who are signed up! Looks like they’re pretty keen to get cash through the door…

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. It’s so rare to see a failing business turned around and become successful. It’s not like there aren’t 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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Like some of you had said, someone may come and turn it around. But I think Ted Baker is a sinking ship.

Profit warnings are hard things to recover from. Especially when the high street isn’t as strong any more, it also goes to show that people have fallen out of love with the brand.

As people would just buy it online. But people aren’t clearly. The brand it’s self has gone downhill

I just spotted this when looking through the Ted Baker RNS.
http://otp.investis.com/clients/uk/ted_baker/rns/regulatory-story.aspx?cid=898&newsid=1352916
Toscafund Asset Management LLP has taken a 12.6% stake. A quick Google search suggest this hedge fund has a history of taking position in troubled firms that it think can be fixed.

I think the brand is still valuable, but discounting has continued (as mentioned) and now in the 50% off region. I went into our local store (Meadowhall) thoough, it didn’t feel like a “fire sale”.

The recent update isn’t great, but at least they will make money for the year.
http://otp.investis.com/clients/uk/ted_baker/rns/regulatory-story.aspx?cid=898&newsid=1351499

FULL YEAR OUTLOOK
Expectations for the period ending 25th January 2020 have been reduced to a minimum profit before tax of £5m, with a potential outcome of up to £10m dependent on Christmas trading and final year-end review.

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Just spotted this update with more bad news.

22 Jan 2020 07:00 Update on Independent Review of Inventory
… Ted Baker expects to report that the value of inventory held on the Group’s balance sheet at 26th January 2019 was overstated by £58m. This is materially higher than the £20-25m preliminary assessment announced on 2nd December 2019. As previously stated, the overstatement is a non-cash item and related to prior years.

For context:

03 Oct 2019 Interim Results for the 28 weeks ended 10 August 2019, Page 12
Inventories £209.6m
Net assets £210.6m

The update and original announcement say it relates to “prior years”. Do we think that means the recent £209.6m inventories figure is accurate? I’m struggling to see how it can be, if in December they were still over 2x out. I’m still keeping an eye on this, but they are making it hard to want to buy this.