Ted Baker’s sales decline in first half

Worldwide
Published:  04 October, 2019

Group revenue fell 0.7% (2.5% in constant currency) to £303.8 million (US$374.67 million) in the 28 weeks ended August 10, 2019.

Overall, Ted Baker’s retail sales, including e-commerce, declined 2.5% (-4.1% in constant currency) to £214.5 million (US$264.55 million). Retail sales fell 3.9% in the UK and Europe to £141.3 million (US$174.27 million), and -15.2% to £9.5 million (US$11.71 million) in the Rest of the World, but were up 3.1% in North America to £63.7 million (US$78.56 million). E-commerce sales declined 1.3% in the period to £52.3 million (US$64.49 million).

In the first seven months of the year, the British lifestyle brand signed two strategic deals to accelerate growth in Asia; the creation of joint venture in China, Hong Kong and Macau, and the appointment of a new licence partner in Japan. The Group also completed the integration of a footwear business; as previously reported by ILM, in September 2018, Ted Baker signed an agreement with Pentland Group to acquire No Ordinary Shoes Limited and No Ordinary Shoes USA LLC, hence, bringing footwear manufacturing back in-house.

“We are continuing to pro-actively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards e-commerce. However, we are not immune to these pressures which have impacted our financial performance during the first half of the year”, said Lindsay Page, Chief Executive, Ted Baker, adding that the Group has, nevertheless, delivered a number of important strategic developments, including reorganising our Asia operations to drive long term growth and integrating the acquired footwear business. “We remain actively focussed on cost control and driving further efficiencies”.

Ted Baker has 560 stores and concessions worldwide, of which 199 in the UK, 124 in the rest of Europe, 136 in North America, 96 in the Middle East, Africa and Asia, and 9 in Australasia.