- Prachi Singh |
Ted Baker Group has announced that revenue increased by 14 percent or 9.5 percent in constant currency to 295.7 million pounds (389 million dollars) for the 28 weeks ended August 12, 2017. Adjusted basic earnings per share, which exclude exceptional items, increased by 12.4 percent to 41.7p and basic earnings per share increased by 17.5 percent to 43.6p.
Commenting on the trading, Ray Kelvin CBE, Founder and Chief Executive, said in a statement: “The Ted Baker brand has continued to perform well and in line with our expectations across all distribution channels. Whilst trading conditions in some of our markets remain challenging, we are confident of making further progress for the full year, in line with our expectations.”
Highlights of Ted Baker’s financial results
The composite gross margin remained constant at 58.9 percent during the period. Profit before tax and exceptional items increased by 12.7 percent to 24.2 million pounds (31.8 million dollars) and profit before tax increased by 17.8 percent to 25.3 million pounds (33.3 million dollars).
Ted Baker said, retail sales were up 13.9 percent or 9.2 percent in constant currency to 217.7 million pounds (286 million dollars), driven by continued investment across the retail channel in new stores and e-commerce platforms. E-commerce sales grew 43.8 percent or 40.7 percent in constant currency to 42.7 million pounds (56.2 million dollars) and represented 19.6 percent of total retail sales. The retail gross margin remained constant at 65.6 percent as the company continued to maintain the improved full price sell through experienced in the previous period.
The company added that wholesale sales increased by 14.1 percent or 10.2 percent in constant currency to 78 million pounds (102 million dollars) reflecting a good performance from the UK business and a strong result from the North American business. The wholesale gross margin remained consistent at 40.2 percent.
Licence income was up 23.1 percent to 9.7 million pounds (12.7 million dollars) with both product and territorial licences performing well. There were notable performances from the company’s product licensees in eyewear, fragrance and skinwear and suiting.
The board has declared an interim dividend of 16.6p against 14.8p last year, representing an increase of 12.2 percent, which will be payable on November 17, 2017 to shareholders on the register at the close of business on October 20, 2017.
Women’s wear performs well during the period under review
Ted Baker Womenswear performed well with sales up 19.1 percent to 177.4 million pounds (233 million dollars). Ted Baker menswear sales increased 7 percent to 118.3 million pounds (155 million dollars). Women’s wear represented 60 percent of total sales during the period and menswear represented 40 percent.
Retail sales in the period in the UK and Europe increased 11 percent or 9.1 percent in constant currency to 145.6 million pounds (191 million dollars). E-commerce sales increased by 37.2 percent or 36.5 percent in constant currency to 34.7million pounds (45.7 million dollars). As a percentage of UK and Europe retail sales, e-commerce sales represented 23.8 percent. Sales from the company’s UK wholesale business increased 7.3 percent to 50 million pounds (65 million dollars).
During the period, Ted Baker opened a store in London and one in Paris and outlets in Gloucester and Roermond. Further concessions were opened with premium department stores in the UK, France, Germany and the Netherlands. The company also opened two licence partner stores in Turkey.
Sales in North America retail division increased by 18.8 percent or 7.8 percent in constant currency to 60.7 million pounds (79.9 million dollars) driven by continued expansion. In the period, Ted Baker opened new stores in Houston and Los Angeles and expanded the Miami Aventura store. The company also closed a store in Los Angeles. In addition, it opened further licence partner concessions in Mexico. The company e-commerce sales increased by 56.8 percent or 41.3 percent constant currency to 6.9 million pounds (9.08 million dollars).
Sales from the North American wholesale business increased by 28.4 percent or 16.7 percent in constant currency, to 28 million pounds (36 million dollars).
Retail sales in Asia increased 29.5 percent or 19.6 percent in constant currency to 11.4 million pound (15 million dollars). During the period, Ted Baker opened a store in Shanghai and relocated a Tokyo store, and opened concessions in Japan and South Korea. E-commerce concession businesses in China and Japan performed well with sales of 1.1 million pounds (1.4 million dollars), which as a percentage of Asian retail sales represented 9.6 percent.
Licensed stores across the Middle East, Asia and Africa continued to perform well and existing licence partners opened new stores in Dubai, Kuwait, Lebanon, Qatar and Saudi Arabia. As at August 12, 2017, the company operated a total of 53 partner stores. The joint venture with our Australian licence partner, Flair Industries Pty Ltd, opened a new store in Bondi and as at August 12, 2017, it operated 10 stores in Australasia.
Ted Baker to further expand retail network across geographies
In the UK and Europe, the company has continued retail expansion with concession openings in Germany and plans to open new stores in Oxford and London Luton Airport and further concessions in the UK, Germany and Spain later this year.
In North America, the company opened six concessions in Canada and remains focused on developing presence further in North America with plans to open a store in Montreal and an outlet in Chicago. In Asia, the company has closed its concessions in South Korea and transitioned its retail operations to a distributor with local knowledge and experience to drive growth in this country.
Ted Baker expects good performance in its wholesale business in the first half of the year to continue for the remainder of the year. As a result, it anticipates reporting high single digit sales growth in constant currency for the full year.
With product and territorial licences continuing to perform well, the company have opened a store in Kuwait with further store openings planned in Qatar, Malaysia, Mexico and its first store in India later this year.
Picture:Ted Baker website