Ted Baker announces "improved performance" in full year and Q1 results

Ted Baker has announced its preliminary results for the 52 weeks ended 29 January 2022, and Q1 trading update for the 12 weeks ending 22 April 2022, seeing "improved performance across all channels and markets."

The business announced on 4 April 2022 that it would be conducting a formal sale process, after it had been approached by Sycamore Capital in March 2022 with a potential offer. On 23 May 2022, Ted Baker announced that it was proceeding with a "preferred counterparty" on the sale after Sycamore pulled out of the process.

According to Ted Baker the year has seen a "robust performance" with revenues and gross margins increasing, while losses were narrowed. The company also mentioned that this was achieved with the backdrop of the ongoing challenges and disruptions of COVID, which had impact store openings and footfall, as well as demand for formal and occasionwear ranges.

However, it noted that in the latter half of the year it had seen a pick-up in occasionwear in both its men's and women's collections, which it interpreted as a sign that people are ready to "get back to some normality." Menswear overall did not perform as well as expected, the business added, as the styling did not resonate with its core customer.

Results for the 2022 financial year:

• Group Brand sales of £918m up 23% compared to FY21
• Group revenue of £428.2m, a growth of 23.2% in constant currency against 2021
• Digital sales delivering 44.3% of the total, against 57.5% in 2021
• Gross margin of 55.2%
• Loss Before Tax of £44.1 million, an improvement of 59.1%

Results for Q1 2023:

• Q1 sales growth of 20% compared to last year
• Cited return to office, weddings and travel as positive tailwinds for the brand
• Added that it is mindful of consumer squeeze from inflation and cost of living pressures
• Q1 trading margin improved 360 bps vs previous year
• Improvement in sales trends for both stores and eCommerce vs Q1 for UK and EU

Ted Baker highlighted that for the first quarter of 2023 it had launched a new digital platform, with has improved user experience and delivered conversion rate improvement.

Rachel Osborne, Chief Executive Officer, commented: "We continue to make good progress against our Transformation Plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker's growth as a global lifestyle brand.

"That momentum has continued into the new year, supported by a steady return to the office and social events. 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."

Ted Baker has 377 stores and concessions worldwide, with 97 in the UK, 81 in Europe, 95 in North America, 95 in the Middle East, Africa and Asia, and 9 in Australasia.

To find out more about the industry's reaction on Ted Baker's trading update read Freetrade's Senior Analyst, Dan Lane take.