Ted Baker full-year losses narrow as revenues rise
Ted Baker reported a narrowing of its full-year losses on Thursday as revenues grew, and the fashion retailer hailed a rise in first-quarter sales.
In the year to 29 January, pre-tax losses narrowed to £44.1m from £107.7m the year before, while underlying pre-tax losses narrowed to £38.4m from £59.2m. Revenues rose 25.5% to £428.2m.
Retail revenues jumped 17.2% to £301.9m, while store revenue was ahead 53.7% at £168.1m. Ted Baker said Covid disruption continued to affect the retail channel, with most of its stores in the UK, Europe and Canada closed for extended periods at the start of the year to comply with local lockdowns.
“As stores reopened during the first half of the year, footfall remained well short of pre-pandemic levels but recovered as the year progressed,” it said. “The success of vaccine rollouts and the reduced prevalence of the virus in many of our territories saw customers beginning to return to the workplace and shops. We saw accelerating momentum in stores through November and the first weeks of December, with some of our locations trading close to – or even above – pre-pandemic levels.”
However, the emergence of Omicron in mid-December reversed this positive momentum. “This coincided with the key trading period in the run up to Christmas, with restrictions and work from home guidance reintroduced across much of Europe and the UK,” the retailer said.
Meanwhile, ecommerce revenue declined 9.7% to £133.8m. Online sales in the previous year benefitted from Covid-related store closures and a higher level of promotion and markdown sales due to elevated stock levels.
The company also provided an update on first-quarter trading, with sales up 20% on the same period a year ago, supported by a steady return to the office and social events.
Chief executive Rachel Osborne said: “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.”