Ted Baker posts 50 percent sales growth in Q2

Group revenue at Ted Baker plc grew by 50 percent for the second quarter, while the company’s reported retail sales increased 30 percent vs Q2 FY2021 but were 30 percent below Q2 FY2020.

The company said, store sales were up 142 percent compared to Q2 FY2021 and down 45 percent against Q2 FY2020. While many of the stores were open during the trading period, footfall remained below prior levels and continues to be stronger in out-of-town and regional locations where Ted Baker has a smaller physical presence.

Commenting on the second quarter trading, Rachel Osborne, the company’s chief executive officer, said: “We have made encouraging progress, with trading over the second quarter in line with expectations, albeit the speed of recovery is different across store locations and regions. Full price sales mix has significantly improved across all our retail channels as we continue to re-establish our premium lifestyle brand positioning.”

Review of Ted Baker’s Q2 performance
The company added that its non-metro centre stores continue to show a healthy recovery and it anticipates a similar trading pattern in the second half, as metro centres and travel retail recover more slowly than overall store estate given ongoing slow recovery of international tourism and the still limited return to offices across the UK and other markets.

The group opened two new short-term lease stores in the UK, in Bromley and Exeter, to expand into these non-metro centre locations, with another one planned during the balance of the year.

Group ecommerce sales decreased 25 percent and represented 39 percent of total retail sales compared to 67 percent in 2021, reflecting highly promotional stance last year ahead of balance sheet recapitalisation. Compared to Q2 FY2020, group ecommerce sales increased 17 percent.

The company’s wholesale and licence revenue increased by 151 percent and decreased 29 percent compared to Q2 FY2020. Ted Baker’s eyewear licence partners, among the biggest in the group reported 72 percent sales increase compared to Q2 FY2021 and 27 percent compared to Q2 FY2020.

Retail trading margin improved by over 500 basis points vs Q2 FY2021 and 190bp vs Q2 FY2020.