Could a ‘digital first’ strategy help the Ted Baker share price recover?

first_img “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Could a ‘digital first’ strategy help the Ted Baker share price recover? Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Fashion retailer Ted Baker (LSE: TED) has been suffering for a while. Having recently undertaken a number of changes at the top of the firm, which has caused a degree of uncertainty, the coronavirus and lockdown have been adding problems the company could do without.In order to survive these tough times, the company revealed this week it’s raising £95m in a cash call. This is higher than its entire listed equity, after its share price has plummeted in recent years. This money is aimed at helping it survive the coronavirus problems. Specifically, it plans on reducing debt and pursuing a “digital first” strategy. Personally however, I think there is still a lot of risk for the Ted Baker share price.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Digital firstMoving to more of an online brand has potential. Indeed digital-only fashion platforms like Boohoo and ASOS have been fairing pretty well during the pandemic. Ted Baker itself, saw a 78% increase in online sales since lockdown was introduced in March.Unfortunately for the company, this may not be enough. Overall like-for-like sales between January and May were down 34%. It reported this week that pre-tax profits were down £110.5m on the year, taking it to a £79.9m loss. The Ted Baker share price has been faring equally badly.Ted Baker share price troublesAs I write this, the Ted Baker share price is about 125p. This represents a 91% decrease on the same time last year – when the stock was about £14 a share. Though these kinds of decreases could make you think it’s now cheap, the shares are cheap for a reason.As well as fundamental changes in consumer sentiment towards the company, Ted Baker has also been hit by a number of controversies. Last year CEO Ray Kelvin resigned over a so-called “forced hugging” scandal.In December, the company had to admit to a £25m accounting error. This error later turned out to be £58m worth of overstated stock. Investors don’t like firms where the accounts of the company may be in doubt. This kind of misreporting is the exact type of thing to cast such doubts.Too late?Personally, I would be worried about the new measures being too late. The Ted Baker share price has been massively hit by the changing economic climate and controversies. Investor confidence is low, and its finances seem in poor shape.Raising money to implement a new strategy or weather a storm can be a sound tactic. But if your numbers are bad, how can you expect to make it up again?One saving grace for Ted Baker is that it falls into an ever-growing ‘category’. It may soon be, if it’s not already, a “distressed” fashion retailer with strong brand recognition. For me, the best outcome may just be a takeover bid from a more successful name. I really don’t think the digital first strategy will be enough on its own. Karl Loomes | Tuesday, 2nd June, 2020 | More on: TED center_img Simply click below to discover how you can take advantage of this. Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Karl has no position in any of the shares mentioned. The Motley Fool UK has recommended Ted Baker. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Karl Loomeslast_img

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