Ted Bakers posts rise in H1 revenues and profit

For the 28 weeks ended 11 August 2018, group revenue at Ted Baker Plc increased by 3.5 percent or 5.5 percent in constant currency to 306 million pounds (395.8 million dollars). The company said that the composite gross margin decreased to 58.3 percent, while profit before tax and exceptional items increased by 3.5 percent to 25 million pounds (32.3 million dollars) and profit before tax decreased by 3.2 percent to 24.5 million pounds (31.6 million dollars). The company’s adjusted earnings per share including exceptional items, increased by 5 percent to 43.8p and basic earnings per share decreased by 1.8 percent to 42.8p.

Commenting on the trading performance, Ray Kelvin CBE, Founder and Chief Executive of Ted Baker, said in a statement: “Ted Baker has continued to develop and expand as a global lifestyle brand across its markets and distribution channels despite challenging external trading conditions. Whilst we believe that the second half of the year will remain challenging due to external factors, we are well positioned to continue Ted Baker’s long-term development.”

Ted Baker’s results through retail channels

Retail sales during the period, Ted Baker said, were up 1.1 percent or 2.9 percent in constant currency to 220.1 million pounds (284.7 million dollars), which was impacted by unseasonable weather across the UK and Europe and North America in the early part of the period, a very hot summer across the UK and Europe, and challenging external trading conditions, particularly in the UK. However, the company added, that the growth was driven by continued investment across the retail channel in new stores and our e-commerce platforms.

Ecommerce sales grew by 24.1 percent or 25.7 percent in constant currency to 53 million pounds (68.5 million dollars) and represented 24.1 percent of total retail sales. The retail gross margin decreased to 64.2 percent.

Wholesale sales increased by 10.1 percent or 12.8 percent in constant currency to 85.9 million pounds (111 million dollars) reflecting a good performance from our UK business, a strong result from our North American business and the earlier timing of deliveries. The wholesale gross margin also increased to 43.4 percent. The company’s licence income was up 11.7 percent to 10.9 million pounds (14 million dollars) with both product and territorial licences performing well.

Sales of Ted Baker womenswear were up 7.8 percent to 191.3 million pounds (247.6 million dollars) and womenswear now represented 62.5 percent of total sales. However, Ted Baker menswear sales were down 3 percent to 114.7 million pounds (148.5 million dollars). Menswear represented 37.5 percent of total sales.

Ted Baker’s sales performance across core markets

Retail sales in the period in the UK and Europe, Ted Baker said, increased 1 percent or 0.7 percent in constant currency to 147.1 million pounds (190.5 million dollars) despite challenging trading conditions, particularly in its concession business with House of Fraser in the lead up to its administration in August 2018. Performance was also impacted by unseasonable weather across the period. E-commerce sales increased by 22.8 percent or 22.9 percent in constant currency. During the period, the company opened one store in London Bridge, one in London Luton Airport and one in Barcelona Airport, together with three outlets; one in Lyon, France and one in each of Neumunster and Weirtheim, Germany and further concessions were opened with premium department stores in France, Germany, the UK and Spain. Ted Baker also opened our first licence partner store in Ukraine. Sales from UK wholesale business increased 9.8 percent to 54.9 million pounds (71 million dollars).

In the North America, sales from retail division increased by 1.8 percent or 8.1 percent in constant currency to 61.8 million pounds (80 million dollars) driven by continued expansion and sales per square foot excluding e-commerce sales decrease of 3.5 percent in constant currency. In the period, Ted Baker opened new stores in Austin, Orlando and San Francisco and further concessions across North America and a further licence partner store in Mexico.

E-commerce sales increased by 26.1 percent or 35.8 percent in constant currency. As a percentage of North America retail sales, e-commerce sales represented 14.1 percent. Sales from the North American wholesale business increased by 10.7 percent or 18 percent in constant currency.

In Asia, sales decreased 1.8 percent or increased 1.8 percent in constant currency to 11.2 million pounds (14.5 million dollars) and sales per square foot excluding e-commerce sales decreased 4.4 percent in constant currency. In China, the company closed one store, one concession and one outlet and in Hong Kong, it closed one store. Ted Baker’s existing licence partners opened new stores in India, Kazakhstan, Malaysia, Singapore and Taiwan.

The company’s board declared an interim dividend of 17.9p, representing an increase of 7.8 percent, payable on November 23, 2018 to shareholders on the register at the close of business on October 12, 2018.

Picture:Ted Baker media centre