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Covid-19 hits Ted Baker's full year results, loss widens

By Prachi Singh

Jun 14, 2021

Management

Image: Ted Baker media gallery

In a preliminary results announcement for the 53 weeks ended January 30, 2021, Ted Baker plc reported group revenue down 44.2 percent or down 44.1 percent in constant currency to 352 million pounds. This decline, the company said was driven by the ongoing impact of Covid restrictions on trading globally. The company’s underlying loss before tax amounted to 59.2 million pounds.

Commenting on the full year trading, Rachel Osborne, Ted Baker’s chief executive officer, said: “While the impact of Covid-19 is clear in our results and has amplified some of the legacy issues impacting the business, Ted Baker has responded proactively and is in a much stronger place than it was a year ago. During the period, we delivered robust cashflow generation, fixed our balance sheet, refreshed our senior leadership team and today we are upgrading our financial targets for the second time since outlining our new strategy last summer.”

Highlights of Ted Baker’s financial results

The company’s retail sales including ecommerce were down 42.2 percent or down 42.1 percent in constant currency to 254.3 million pounds, while ecommerce sales increased 22 percent or 22.1 percent in constant currency to 144.9 million pounds. The company’s directly operated ecommerce channels reported growth of 30.2 percent.

Ted Baker’s wholesale sales decreased by 50.3 percent or 48.6 percent in constant currency to 85.3 million pounds and wholesale gross margin reduced to 37.6 percent compared to 39.8 percent in 2020.

Licence income decreased by 34.5 percent to 12.4 million pounds. Ted Baker womenswear sales decreased by 40.7 percent to 219.7 million pounds, while menswear sales were down 50.3 percent to 119.8 million pounds.

Ted Baker’s performance across core geographies

The company’s retail sales in the UK and Europe decreased by 38.7 percent or 38.9 percent in constant currency to 181.9 million pounds, with ecommerce sales increasing to represent 63 percent of the total. Sales from UK wholesale business was lower by 50.9 percent or 48.4 percent in constant currency.

North America retail sales declined 46.1 percent or 45.6 percent in constant currency to 69.9 million pounds, ecommerce sales increased by 37 percent to 30.3 million pounds.

Ted Baker updates on Q1 trading

The company added that first quarter trading has been materially impacted by ongoing Covid restrictions, with lockdowns in place in the UK, Europe and Canada for parts of this period.

First quarter group revenue was down 19.9 percent or down 17.3 percent in constant currency, while ecommerce was up 4.5 percent and up 25.9 percent against Q1 FY20. Retail stores were down 40.7 percent or down 73.1 percent against Q1 FY20. Ted Baker said, wholesale and licence sales during the quarter were down 22.4 percent or down 48.3 percent reflecting cautious ordering from store-based trustees, as well as continued restrictions on store openings in Europe.