Ted Baker underestimated stock blunder by more than £30m
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Ted Baker has reported that the value of inventory held on the group’s balance sheet at 26th January 2019 was overstated by £58 million, a number more than double the value of the £20-25m it initially suggested.
In December, the retailer announced an accountancy issue where the company might have overstated the value of its stock which resulted in the company’s shares dropping by 10%.
The company also issued a profit warning and saw its CEO Lindsay Page and chairman David Bernstein resign after the incident had been publicly revealed.
The December update stated that the company’s expectations for the period ending 25th January 2020 have been reduced to a minimum profit before tax of £5m, with a potential outcome of up to £10m dependent on Christmas trading and final year-end review.
Ted Baker’s board plans to next update the market at the preliminary results.
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