Source - RNS
RNS Number : 6007J
Ted Baker PLC
06 December 2018
 

 

6 December 2018

 

Ted Baker Plc

("Ted Baker" or the "Group")

Trading Update

For the 16 week period from 11 August 2018 to 1 December 2018

Resilient performance despite challenging external trading conditions

Ted Baker, the global lifestyle brand, announces a 0.2% (0.4% in constant currency) decrease in Group revenue for the 16 week period from 11 August 2018 to 1 December 2018 (the "period"), compared to the same period last year.  This reflected the anticipated decline in wholesale sales due to the timing of deliveries, largely offset by the retail sales performance.  This result was achieved despite the continuing challenging external trading conditions across our markets.  In the UK, Europe and the East Coast of America, trade was affected by the unseasonal weather at the start of the period and trading in the UK continues to be impacted by the well-publicised challenges facing some of our trading partners.

 

Total retail sales including e-commerce increased by 2.3% (2.1% in constant currency) for the period and average retail square footage rose by 5.2% to 427,586 sq.ft (2017: 406,258 sq.ft).  E-commerce sales, which are an integral and increasingly important component within our retail channel, increased by 18.0% (15.3% in constant currency) and represented 30.3% (2017: 26.3%) of total retail sales for the period.  Total retail sales for the last eight weeks of the period increased by 4.0% as the weather became more typical for the season.

 

As anticipated, wholesale sales for the period decreased by 6.5% (7.0% in constant currency) due to the earlier timing of wholesale deliveries in the first half of the year.  We continue to anticipate mid to high single-digit wholesale sales growth (in constant currency) for the full year.

 

Both retail and wholesale gross margins were in line with our expectations.

 

Our product and territorial licensees continued to perform well, reflecting the global strength and appeal of the brand. We opened licensed stores in India, Kosovo, Saudi Arabia, Singapore and South Korea.

 

The Board remains mindful of the challenging markets in which the Group operates and is focussed on making further progress for the full year.

                                         

Commenting on trading, Ray Kelvin CBE, Founder and Chief Executive said:

 

"We are pleased with the brand's continued expansion, which is a reflection of the strength of the Ted Baker brand and the design and quality of our collections.

The investment in our flexible business model ensures that the Ted customer has multiple channels to engage with the brand and underpins our long term development.  Our global e-commerce business continues to grow well and is complemented by our digital marketing strategy and unique stores that showcase the brand."

Ted Baker intends to make its next trading statement covering the period from 2 December 2018 to 5 January 2019 in mid-January 2019.

 

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of the Company is Charles Anderson, Finance Director & Company Secretary.

Post Trading Update

 

Following the Company's announcement on 3 December 2018, the Company confirms that it has appointed Herbert Smith Freehills LLP, a leading and independent law firm, to conduct an independent external investigation into the reports received. Herbert Smith Freehills LLP will report into a committee of the Company's Non-Executive Directors that will be chaired by Sharon Baylay.

 

 

 

Ted Baker

Tel: +44 (0) 20 7255 4800

Lindsay Page, Chief Operating Officer & Group Finance Director

 

Charles Anderson, Finance Director & Company Secretary

 

 

 

Hudson Sandler

Tel: +44 (0) 20 7796 4133

Alex Brennan / Hattie O'Reilly / Nick Moore

 

 

 

 

Enquiries and further information:

www.tedbaker.com

www.tedbakerplc.com

Media images available for download at:

www.tedbakerplc.com/ted/en/mediacentre/imagelibrary

 

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates.

Forward-looking statements are based on the information available to the Directors at the time of preparation of this announcement, and will not be updated during the year. The Directors can give no assurance that these expectations will prove to have been correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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