Ted Baker revenues rise as shoppers return to stores

2nd Sep 2022 09:39

(Sharecast News) - Ted Baker reported a rise in revenues on Friday as shoppers returned to stores.

In the 14 weeks to 29 July, group revenues were up 3.4% compared to the same period a year earlier. The fashion retailer said a stronger in-store performance across both Ted Baker and its partners was partially offset by a drop in e-commerce sales.

Store revenue grew 20.4% as consumers returned to the high street. However, ecommerce revenue fell 13.2%, impacted by challenges following the launch of the new ecommerce platform.

Wholesale revenue declined 14.1%, and licence revenue was up 62.3%, as the increase in travel and footfall drove a strong performance across formalwear and childrenswear.

"We expect to see continuation of customers choosing to shop in stores as high street footfall and global travel both continue to recover," the retailer said.

"Until the current issues with the new ecommerce platform are resolved we expect to see a drag on traffic and conversion rates. 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 company also said it remains mindful of "the significant recent deterioration of the macroeconomic environment, falling consumer confidence and continued volatility in the supply chain" as it moves towards its event-led peak trading season.

Ted Baker announced last month that it had agreed to be taken over by Reebok owner Authentic Brands Group in a £211m deal.