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Ted Baker, Ferguson, Games Workshop, and more of the week’s big news
Faded British design champion Ted Baker (TED) continues to suffer, falling more than 25% as it warned profit for the year to January 2020 would fall significantly short of forecasts (11 Jun).
The company, reeling from the recent departure of founder Ray Kelvin amid a storm of controversy, guided for underlying profit of between £50m and £60m. Broker Liberum Capital reduced its own forecast from £70.7m to £50.3m.
Liberum suggested in the wake of this latest warning that the stock might be vulnerable to a takeover.
In a very different part of the retail sector, table-top games specialist Games Workshop (GAW) continues to thrive. Its stock hit fresh new highs close to £50 as, despite the previous year being a hard act to follow, it unveiled strong sales and profit growth for the year to 2 June.
HOUSEBUILDERS IN FOCUS
Several updates put the spotlight on the housebuilding sector, including MJ Gleeson (GLE) chief executive Joylon Harrison departing on 10 June after a row over his remuneration.
This was exacerbated at Crest by the company’s transition away from high-end properties in the south east to homes at lower price points and areas like build-to-rent.
WASHOUT FOR FERGUSON
Moving across the Atlantic, plumbing products firm Ferguson (FERG) looked a victim of a slowdown in the US construction market, partially caused by severe rain, as quarterly organic growth from its main country of operation fell to 3.3% from 9.7% in the previous three-month period.
The company attempted to soften the blow for investors with news of a $500m share buyback programme, but the stock tumbled on the growth disappointment.