Can changes at the top help the Ted Baker share price?

first_img 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. 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. Enter Your Email Address See all posts by Karl Loomes Karl Loomes | Monday, 30th March, 2020 | More on: TED “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. 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.center_img Image source: Getty Images. Can changes at the top help the Ted Baker share price? Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Our 6 ‘Best Buys Now’ Shares We all know businesses are set to struggle in the coming months. The coronavirus, and more specifically the lockdown and self-isolation it has brought about, is going to hit companies large and small.I believe that in most cases, the market sell-off we are seeing is an opportunity. Of course, we need to pick the companies that can and will recover. We need to be wary of the ones that were struggling even before this latest crisis.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…Unfortunately, clothing store Ted Baker (LSE: TED) falls into this category. Its share price dropped more than 90% over the past 12 months, as poor sales numbers and accounting miscalculations have taken their toll.New managementThe company today confirmed that interim CEO Rachel Osborne, who took over three months ago after Lindsay Page resigned, is named the permanent chief executive. Osborne previously worked as CFO at Debenhams, where she helped steer the company through a restructuring – something she seemingly intends to do again.Osborne said that despite coronavirus concerns, she has “put together a clear plan to transform Ted Baker”. This seems likely to be easier said than done, however.Previous CEO Page resigned after the company reported its fourth profit warning of the year. The company also had to carry out an operation review after identifying a £25m accounting error. This resulted in an admission that stock had been overstated by some £58m.Accounting errors are always cause for concern – financial reports are, after all, the very basis for investors to value a company. If we can’t trust the numbers, confidence in the stock as an investment soon fades away.Covid-19 concernsTo clarify, I don’t think Ted Baker’s accounts are at the stage that lack-of-confidence yet. I believe that a turnaround in the company’s fortunes would be possible – under normal circumstances. Unfortunately, of course, these are not normal circumstances.As I see it, Ted Baker will be hit on a number of fronts because of the lockdown. Firstly, and most obviously, its stores are shut as non-essential. A company that can’t sell its products is not going to last long.Secondly, people don’t buy new clothes to sit in the house all day. Ted Baker may be able to keep its online store open, but it won’t do it much good if nobody is shopping.This second problem could last for longer. It is hard to tell the social consequences of this crisis, but it seems unlikely that people will rush out to shop for clothes once the government restrictions are lifted. A company in a strong financial position might be able to withstand this kind of hardship, for a while at least. But Ted Baker was already in dire straits. It may be able to survive, but there is just far too much risk for me to invest.last_img read more