Under-fire fashion retailer Ted Baker on Thursday said it is determined to learn lessons from the “Hug-gate” scandal as it reported a fall in profits.
Founder and boss Ray Kelvin took a leave of voluntary absence in December following complaints he imposed a culture of forced hugs. He denied misconduct allegations but resigned earlier this month.
Pre-tax profits in the year to January 26 fell 26% to £50.9 million, hit by increased industry discounting and consumer uncertainty. The firm also lost £600,000 when House of Fraser collapsed.
Group sales rose 4.4% to £617.4 million, and acting chief Lindsay Page said there is no evidence shoppers have left the brand in the wake of the controversy.
An investigation, looking into the allegations and HR policies at Ted Baker, is expected to conclude early in the second quarter which begins in April.
Page said: “Ted Baker has continued to grow across each of the brand’s distribution channels despite difficult trading conditions across a number of the group’s global markets. This resilient sales performance again reflects the strength of the brand, the talent of our teams, and the quality of our collections.”
The shares fell 84p to 1626p.
