Ted Baker revenue down 0.2% following expected decline in wholesale sales
Fashion brand Ted Baker saw its group revenue edge down 0.2% year-on-year in the 16 weeks to 1 December following an expected decline in wholesale sales.
Total retail sales increased by 2.3%, or by 2.1% in constant currency, as the company’s average retail square footage rose by 5.2% to 427,586 square feet. Online sales climbed by 18%, or by 15.3% in constant currency, to account for 30.3% of retail sales in the period.
The company said the uplift in retail sales was achieved despite trading in the UK, Europe and the east coast of America being affected by unseasonal weather at the start of the period.
As expected, wholesale sales fell by 6.5%, or by 7% in constant currency, due to the earlier timing of wholesale deliveries in the first half of the year.
Both the company’s retail and wholesale gross margins were in line with expectations.
Ray Kelvin, founder and chief executive of Ted Baker, said: “We are pleased with the brand’s continued expansion, which is a reflection of the strength of the Ted Baker brand and the design and quality of our collections. The investment in our flexible business model ensures that the Ted customer has multiple channels to engage with the brand and underpins our long-term development. Our global ecommerce business continues to grow well and is complemented by our digital marketing strategy and unique stores that showcase the brand.”
At the weekend it emerged that the company had been criticised by current and former staff due to alleged “forced hugging” by Kelvin and wider allegations of harassment within the business. On Monday the company’s board issued a statement saying that Kelvin and the company’s leadership team prided themselves on Ted Baker being “a great employer and business to work with” and that it would be carrying out a “thorough and urgent independent external investigation” into the matter.
