// Ted Baker revenue drops 45.9% to £169.5m for the 28 weeks ended August 8 2020
// The retailer recorded an underlying loss before tax pre-IFRS 16 of £39m
// Ted Baker also revealed it had made 950 job cuts since June
Ted Baker has recorded ongoing losses before tax after revenues dropped and costs linked to the Covid-19 pandemic increased.
For the 28 weeks ended August 8, group revenue dropped 45.9 per cent to £169.5 million, driven by the ongoing impact of restrictions on trading globally.
The retailer recorded an underlying loss before tax pre-IFRS 16 of £39 million, primarily driven by lower revenue levels, and partially offset by cost actions.
Meanwhile, online sales had increased by 41.8 per cent to £74.2 million, thanks to continued investment in its digital business.
Wholesale sales dropped 55.7 per cent to £39.5 million, reflecting market pressure on its Trustees.
Ted Baker also revealed had made 953 job cuts across its head offices and stores since June.
In June the retailer launched a three-year strategic transformation programme which included the sale of its Ugly Brown Building head office earlier this year, and reducing its head office costs in the UK and US.
Meanwhile Ted Baker said it generated a free cash flow of £19 million since January 25.
It said its cost out programme will deliver an annual £31 million of payroll savings, up from £27 million announced at its July AGM.
It had a net cash of £60.8 million on August 28, 2020, well ahead of management’s expectations.
“This has been an unprecedented period for Ted Baker and today’s Interim Results clearly show both the impact of the Covid-19 pandemic and the steps we have taken to reset the business,” Ted Baker chief executive Rachel Osborne said.
“I believe that these actions and the early progress we have made with Ted’s Growth Formula means we now have the right foundations in place for the future.
“Even with some of our legacy issues being amplified by Covid-19, our balance sheet is materially stronger than we had envisaged this early in the plan and operational cashflow will be positive for the full-year.
“At the same time, we have strengthened our leadership team, made good progress against our brand, product and digital ambitions, and are on track or ahead of our operational KPIs for the first year of our plan.
“While these are still very early days in Ted’s transformation, and the economic outlook remains uncertain, we are confident that we have the right strategy and team in place and that we are setting the business up for future success.”