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Ted Baker sales up 20.5 percent, momentum continues in the current fiscal

By Prachi Singh

May 26, 2022

Business

Image: Ted Baker media gallery

Ted Baker Group revenue increased by 20.5 percent or 23.2 percent in constant currency to 428.2 million pounds for the full year. Ted Baker's total brand sales increased to 918 million pounds in the year with an improved performance seen across all of our channels and markets.

Gross margin before non-underlying items improved by 105 basis points to 55.2 percent. The loss before tax was 44.1 million pounds compared to the 2021 loss of 107.7 million pounds, while the loss before tax and non-underlying items was 38.4 million pounds versus loss of 63.7 million pounds in 2021.

The basic loss per share was 19.3 pence compared to loss per share 56.2 pence, while underlying loss per share changed to a loss of 16.4 pence versus loss per share 26 pence in the previous year.

In the first quarter of this fiscal, the company reported sales growth of 20 percent compared to last year.

Commenting on the preliminary full year results, Rachel Osborne, Ted Baker’s chief executive officer, said: "While we remain mindful of what is a challenging macro environment, we are well positioned for growth. The positive response to our SS22 collection and the recent launch of our new digital platform, supported by our strong brand, capital light strategy and well-established distribution channels give us confidence in Ted Baker's future."

Review of Ted Baker’s full year performance

The company closed a further 15 locations and opened seven stores during the period and transitioned business with House of Fraser from a concession to a wholesale model.

The company’s ecommerce revenue decreased 9.7 percent or 8.1 percent in constant currency in the year against the comparable period that saw growth of 24.8 percent. On a two-year basis ecommerce revenue was up by 12.7 percent.

In the UK and Europe, sales rebounded strongly against the previous year, ending the year up 48.2 percent.

Wholesale revenue overall increased by 30.4 percent or 33 percent in constant currency to 111.2 million pounds, while licence income increased by 21.7 percent to 15.2 million pounds. The company saw a good performance in the Eyewear segment in North America and the UK, as well as from its partnership with Next for childrenswear and lingerie & nightwear. Sales in the formalwear segment remained subdued with Covid restrictions affecting return to the workplace and with fewer events such as weddings taking place.

Ted Baker womenswear sales increased by 23.3 percent to 270.9 million pounds and represented 66.1 percent of total sales, while menswear sales increased by 15.8 percent to 138.7 million pounds and represented 33.9 percent of total sales.

Ted Baker’s financial results across core geographies

Retail sales in the UK and Europe increased by 11.3 percent or 12.1 percent in constant currency to 204.7 million pounds, with ecommerce sales representing 51.3 percent of the total. Wholesale sales in the regions rose by 48.2 percent or 48 percent in constant currency.

The company’s North American business saw a good recovery from the previous year's challenges. Store sales increased by 62.4 percent or 71.7 percent in constant currency to 64.4 million pounds. The company closed four stores in the year that were not considered financially viable, and opened one new location in San Antonio, Texas.

Ecommerce sales reduced by 8.9 percent or 2.8 percent in constant currency, while on a two-year basis ecommerce sales grew by 30.4 percent. Ecommerce sales represented 30.9 percent of total retail sales against 44.3 percent in 2021. Wholesale sales increased by 2.3 percent or 9 in constant currency to 33.6 million pounds.

The company owns stores in South Africa, where it opened new locations in Johannesburg and Durban, and now operates six in the country. Total rest of the world retail sales increased by 74.4 percent to 4.1 million pounds, up 69.4 percent in constant currency.

During the year Ted Baker’s territory licence partners opened one store in Kuwait, four in south-eastern Europe, two in India and one in Indonesia, and closed five in Asia and one in Europe. Its joint venture in China (including Hong Kong and Macau) opened five new stores during the period, and closed three unprofitable locations. It now operates 22 stores and concessions across the region.

The company’s Australian joint venture partner opened two new short lease stores during the year, and now operates eleven stores in Australia and New Zealand.

Ted Baker