Ted Baker revenues recover in second quarter

Ted Baker has posted a spike in second-quarter sales as it hailed “trading momentum” following the reopening of its stores in the spring.
“Our transformation programme remains on track." : Ted Baker CEO.
// Ted Baker posts a spike in second-quarter sales
// The retailer said it expects its metro centre & travel retail stores to recover more slowly than the rest of its store estate

Ted Baker has said sales were in line with expectations in its second quarter, although the ongoing Covid-19 pandemic has led to different recovery times across its key markets.

The fashion retailer said group sales jumped 50 per cent year on year during the 16 weeks to August 14, after scaling back on the “aggressive” promotional activity of last year.

In addition, reported retail revenues were up 30 per cent compared with last year, but remained 30 per cent below the second quarter of 2019, prior to the onset of the Covid crisis.

READ MORE: Ted Baker names ex-Hobbs CEO Meg Lustman as one of two new board members

The retailer said performance at its stores in UK and US shopping centres, and its US concessions, improved particularly strongly during the period.

Sales made through its physical stores more than doubled compared with the same period last year, when all of its shops were impacted by government enforced lockdowns and social-distancing restrictions amid Covid.

However, store sales remained 45 per cent below pre-pandemic levels.

Online sales fell 25 per cent year on year and now account for 39 per cent of Ted Baker’s total retail sales. Compared with the second quarter of 2019/20, ecommerce sales were up 17 per cent.

The retailer said revenue from its wholesale and licence division surged 151 per cent year on year, although that level remained 29 per cent below the same period in 2019.

Ted Baker chief executive Rachel Osborne 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.”

The fashion retailer 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.

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.

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