Ted Baker posts 35% increase in sales despite Omicron in Q4 update
Ted Baker has announced an update on its Q4 results, posting accelerating sales growth, despite Omicron headwinds, in the 12-week period from 7 November 2021 to 29 January 2022.
The premium fashion brand posted a 35% growth in group sales compared to Q4 in fiscal year 2021, and up 18% from the previous quarter. Compared to Q4 pre-pandemic levels, retail sales were running at -10% before Omicron warnings, falling to -42% during the Omicron surge.
Ted Baker added that the group successfully navigated the global supply chain disruptions with some modest impact on product availability.
The brand's womenswear AW21 collections performed well against the target product pyramid, with strong sales across bags, footwear and tops. Performance on Menswear more mixed, with sales over-indexing on core and continuity product, with strong performance on footwear.
The British retailer reported positive net cash of £3.0 million, in line with previously upgraded guidance alongside strong liquidity with bank facilities of £80m in place.
Ted Baker said the group was making good progress on recruiting for a new chair, with the search process well underway. Helena Feltham has held the role as interim Chair since December 2021 following the sudden death of its previous chairman, John Barton.
Rachel Osborne, Chief Executive Officer of Ted Baker, commented: "We continue to make good progress with our transformation and despite the impact of Omicron on the quarter, were pleased to deliver Group sales up 35% compared with last year. The strong improvement in trading margin is encouraging, along with the increase in full price sales mix, demonstrating the progress we're making as Ted re-establishes its premium brand positioning.
"Our product is resonating with customers and we were particularly pleased with the performance of Womenswear, with bags, footwear and tops all selling well, and a strong initial reaction to the Spring/Summer 2022 collection. Ted is emerging from Covid a stronger more sustainable business and we're excited for the future."
For the year ahead, Ted Baker has reconfirmed its fiscal year 2023 targets, with an anticipation of £30m free cash flow and EBITDA margin (pre IFRS16) of 7-10%.