Ted Baker posts revenue growth of 3.4 percent

For the 14-week period to July 29, Ted Baker Group's revenue was up 3.4 percent and flat at constant currency compared with the second quarter last year. But revenue was down 28.3 percent compared with Q2 FY20.

The company said store revenue was up 20.4 percent during the quarter, led by increased footfall to Ted Baker locations as consumers returned to the high street. However, it was down approximately 23 percent on a like-for-like basis compared with Q2 FY20.

E-commerce revenue was down 13.2 percent year-over-year but up approximately 4 percent on a like-for-like basis compared with Q2 FY20. It said the results were impacted by challenges following the launch of its new e-commerce platform alongside consumers returning to shop in stores.

Wholesale revenue was down 14.1 percent year-over-year and down 38.6 percent compared with Q2 FY20.

Ted Baker recovers as shoppers return to stores

Licence revenue was up 62.3 percent year-over-year, or up 14.9 percent compared with Q2 FY20, as an increase in travel and footfall drove a strong performance across formalwear and childrenswear.

Looking ahead, Ted Baker said it expects to see a continued trend of customers choosing to shop in physical stores as high street footfall and global travel both continue to recover.

But it also warned that “until the current issues with the new e-commerce platform are resolved” it expects to see “a drag on traffic and conversion rates”.

It added that “work continues at pace to ensure that the system is fully functional and optimised ahead of peak trading, although risk remains that certain milestones may not be met in this period”.

The trading update comes after Ted Baker reached an agreement earlier this month to be acquired by Authentic Brands Group.