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Retailer Ted Baker has reported a solid set of Full Year results, with faster growth for the 52 week period than January’s already strong 8-week Christmas trading statement.

Add to this welcome margin expansion, an FX boost and dividend growth in-line with profits and investors are scratching their heads at today’s 7% share price declines.

As with many other retailers (and indeed corporates) of late, however, it has fallen foul of its outlook statement, with management anticipating trading conditions will remain challenging across many of its global markets. More cautious investors are clearly not prepared to look through this observation, for fear of it actually sugar-coating what could be a worsening in recent trading conditions. After all, the message from the high street this week was hardly one of optimism. And as much as growth levels are handsome double-digits (retail, wholesale, internet and licensing), there also a worry that GBP’s recent climb is eroding what has been a rather helpful FX boost.

Today’s move extends the share price decline from March’s 2¼yr highs of 3240p, breaking below 2950p to revisit the lows of early January, before the aforementioned Christmas trading statement that engineered a 10% share price jump.


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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Mike Van Dulken

Mike van Dulken

Accendo Markets’ Mike van Dulken has worked in the City since 2002, with some of the biggest names in the City. His career kicked off at Jefferies as an equity analyst before a 2007 move to Société Générale saw him help service hedge funds with short-term trade ideas during the financial crisis.

Head of Research at Accendo since 2010, covering shares, indices, commodities and FX, he is regularly quoted in the financial press. Accendo Markets has been voted Best CFD research Service by ADVFN in 2017 and 2018.

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