Ted Baker anticipates £5m Brexit costs as fourth quarter sales decline

Fashion firm Ted Baker has posted a 47% revenue fall for the final quarter, and warned that it assumes UK stores will remain closed until the end of May.

The company also said that following the trade agreement between the UK and EU signed in late December, it anticipates up to £5 million of incremental costs associated with Brexit, “reflecting extra duty and shipping costs partially offset by a new customs warehouse capability”.

The retailer faced a tough 2020 where it had to temporarily shut shops at various points for Covid-19 lockdowns.

It has also been impacted by less demand for occasionwear owing to numerous social events being cancelled, such as weddings. Pre-Covid the fourth quarter would have included the Christmas party season.

Rachel Osborne, chief executive of Ted Baker, said: "While we have made encouraging strategic progress, trading over the fourth quarter was difficult and heavily impacted by the Covid pandemic, leading to the closure of many of our stores during the period and a lack of demand for outerwear and occasionwear over the festive season in particular.”