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May 27, 2022

Ted Baker narrows FY loss as transformation bears fruit

UK high street fashion chain Ted Baker narrowed its annual pre-tax loss for the 52 weeks ended 29 January, with CEO Rachel Osborne noting good progress against its Transformation Plan which helped deliver strong sales momentum through the year.

By Beth Wright

Ted Baker reported a loss before tax of GBP44.1m (U$55.6m) for the last financial year, compared to a loss of GBP107.7m in the previous 12 months. Underlying loss before tax amounted to GBP38.4m, compared to GBP59.2m last time.

Group revenues in the period increased by 20.5% to GBP428m from GBP355.3m a year prior. Retail revenue amounted to GBP301.9m, up from GBP257.5m a year earlier. Store revenue surged 53.7% year-on-year to GBP168.1m, while e-commerce sales fell 9.7% to GBP133.8m.

“We continue to make good progress against our Transformation Plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker’s growth as a global lifestyle brand,” Osborne said.

“That momentum has continued into the new year, supported by a steady return to the office and social events. While we remain mindful of what is a challenging macro environment, we are well-positioned for growth. The positive response to our spring/summer 22 collection and the recent launch of our new digital platform, supported by our strong brand, capital light strategy and well-established distribution channels give us confidence in Ted Baker’s future.”

For the 12 weeks to 22 April, Ted Baker reported a 20% rise in group sales on the prior-year period.

It pointed to the return to the office, weddings, and travel as providing positive tailwinds for the brand but said it is “mindful” of consumer squeeze from inflation and cost of living pressures.

The group also cited an encouraging start to the second quarter, with a sequential improvement in sales trends for both stores and e-commerce for the UK and Europe.

With regards to its ongoing formal sales process, Ted Baker said it did not consider offers received from private equity firm Sycamore Partners and other unsolicited third-party bid interest last month as reflecting appropriate value for stakeholders.

It announced earlier this week it is proceeding with a preferred counterparty to take forward into a process of confirmatory due diligence. The process is likely to take several weeks. 

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