- Prachi Singh |
Ted Baker has announced a 0.2 percent or 0.4 percent constant currency decrease in group revenue for the 16 week period from August 11, 2018 to December 1, 2018, compared to the same period last year. Meanwhile, the company said that it has appointed Herbert Smith Freehills LLP, an independent law firm, to conduct an external investigation into allegations of “forced hugs” against its founder and CEO Ray Kelvin. The firm will report into a committee of the company's non-executive directors chaired by Sharon Baylay.
Commenting on trading, Ray Kelvin CBE said in a statement: "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. Our global e-commerce business continues to grow well and is complemented by our digital marketing strategy and unique stores that showcase the brand."
Highlights of Ted Baker’s trading performance
The company added that its trading results reflected the anticipated decline in wholesale sales due to the timing of deliveries, largely offset by the retail sales performance and that the result was achieved despite the continuing challenging external trading conditions across the company’s markets.
Total retail sales including e-commerce increased by 2.3 percent or 2.1 percent in constant currency for the period and average retail square footage rose by 5.2 percent. E-commerce sales increased by 18 percent or 15.3 percent in constant currency and represented 30.3 percent of total retail sales for the period. Ted Baker added that total retail sales for the last eight weeks of the period increased by 4 percent as the weather became more typical for the season.
Ted Baker said, 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.
Wholesale sales for the period decreased by 6.5 percent or 7 percent in constant currency due to the earlier timing of wholesale deliveries in the first half of the year. The company continues to anticipate mid to high single-digit wholesale sales growth in constant currency for the full year.
The company opened licensed stores in India, Kosovo, Saudi Arabia, Singapore and South Korea.
Picture:Ted Baker media gallery