Shares in Ted Baker (LON:TED) plunged on Tuesday after the luxury clothing brand issued a profit warning.
Shares in the clothing retailer dropped by almost 13% during Tuesday morning trading.
Ted Baker said in a trading update that it now expects profit before tax to amount to a minimum of £5 million, possibly reaching £10 million depending on trading over the festive period.
The luxury clothing brand said that the past year has been “the most challenging in our history”.
Ted Baker added that trading over November and Black Friday was below expectations, with lower than anticipated margins and sell through.
“An anticipation that difficult trading conditions will continue, and therefore it is appropriate to take a more cautious outlook for the remainder of the financial year, which includes the key trading months of December 2019 and January 2020,” the company said in a statement.
In addition to the profit warning, the company announced that its bosses have stepped down.
Lindsay Page has resigned as Chief Executive Officer, and the search for a replacement will begin in January 2020.
Additionally, David Bernstein also stepped down as Executive Chairman of the company.
“I would like to thank everyone at Ted Baker whom I have had the pleasure of working with since 1997. In particular, I am grateful for the team’s support over the last 12 months,” Lindsay Page said.
“I would also like to take this opportunity to thank Ray Kelvin for the opportunity he gave me 22 years ago to join this fantastic brand and help to achieve his vision of creating a truly international business. I am very proud of everything the team at Ted Baker has achieved together,” Lindsay Page continued.
Ted Baker is not the only business to feel the bite of the gloomy trading conditions to hit the UK retail sector.
Mothercare (LON:MTC) also made headlines on Tuesday, posting a deeper loss in its half year results.
Ted Baker warned investors earlier in October of its difficulties as it posted a pre-tax loss, battling against “unprecedented” trading conditions.
Shares in Ted Baker plc (LON:TED) were down on Tuesday, trading at -14.86% as of 10:38 GMT.