Ted Baker has warned that its full year profit is to be lower than expected due to foreign exchange movements and costs associated with system upgrades and inventory write-downs.

The company said in a statement: “Profit before tax is now expected to be in the region of £63 million; this is before previously announced costs associated with the ongoing independent external investigation, exceptional costs relating to the previously announced debtor balances owed by House of Fraser and the acquisition of No Ordinary Shoes Limited and No Ordinary Shoes USA and other non-cash impairments relating to retail assets.”

Ted Baker said foreign exchange movements in the final week of its financial year have resulted in a mark-to-market profit impact of approximately £2.5 million. In addition, a system upgrade has enabled the company to identify additional product costs of approximately £2.5 million that rose during the second half of the financial year.

Ted Baker will announce its full year results on 21st March 2019.