The share price of Ted Baker slumped by over 15 percent on Monday after the troubled clothing brand revealed a £70.4m net loss for the full year ended January 25th 2020. The loss represented a variance of negative £94.9m.
In revealing the dire results, Ted Baker revealed that it is looking to raise £90m with an equity raise with new shares being offered at 75p – a 51.1% discount on the closing price of 153p recorded on May 29th.
As it tries to turnaround its fortunes, it revealed ‘Ted’s Formula for Growth’ – a three pronged strategy designed to stablise the business and grow it.
The first ‘building block’ refers to stablilising the foundation of the company with a refreshed leadership and actions such as the equity raising announced today.
The next block refers to driving growth – namely attracting more customers and ensuring its products are more relevant to everyday wearers.
Thirdly, the final block will focus on improving its operational excellence – this includes upgrades to IT systems, streamlining its supply chain and improving profitability of retail stores.
In announcing the new strategy, Ted Baker claimed there were exciting opportunities ahead:
“Today we are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by COVID-19.
The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth. Over the past 6 months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas. I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.“Rachel Osborne, CEO, Ted Baker