Ted Baker hails ‘snap back’ in second quarter
Fashion retailer Ted Baker has said sales were in line with expectations in its second quarter, although the ongoing coronavirus pandemic has led to different speeds of recovery across its key markets.
In the 16 weeks to 14 August, group revenue rose by 50% year-on-year after the retailer “snapped back” from the negative impact of Covid-19 and trading momentum continued to build throughout the period. In addition, reported retail sales increased by 30% compared to the same period last year, but were 30% below the second quarter of 2019.
Rachel Osborne, Ted Baker chief executive, said: “We have made encouraging progress, with trading over the second quarter in line with expectations, albeit the speed of recovery is different across store locations and regions. Full price sales mix has significantly improved across all our retail channels as we continue to re-establish our premium lifestyle brand positioning.
“Our transformation programme remains on track, and we have moved forward on the three key pillars of our plan in refreshing and re-energising the product and brand, prioritising digital and capital light growth and through our cost savings programme.”
Looking at store sales, these increased by 142% on last year, but were down 45% on the same period in 2019. Ted Baker said footfall remains below prior levels and continues to be stronger in out-of-town and regional locations where it operates smaller stores. It now expects its metro centre and travel retail stores to recover more slowly than the rest of its store estate due to the lack of international tourists and the still limited return to offices in the UK and other markets.
Meanwhile, ecommerce sales decreased by 25% and represented 39% of total retail sales compared to 67% in the same period a year ago. This was a reflection of the company’s highly promotional stance last year.
During the period, the company opened two new short-term lease stores in Bromley and Exeter.
Ted Baker said its new autumn/winter collections have been well received by customers with encouraging early sales.
Looking ahead, Osborne added: “The Ted Baker brand remains strong, evidenced by YouGov’s recognition of Ted Baker as the second most popular luxury brand in the UK. Combined with our robust balance sheet and strong cash management we are well placed for the future. It is still early days in the recovery, but we are confident that Ted is starting to emerge from Covid a stronger and more resilient business.”
