Ted Baker sales have been boosted by the return of high street shoppers as the British fashion brand prepares for a US takeover
- The fashion chain recently agreed a £211million takeover by Authentic Brands Group
- Ted Baker’s retail revenue was still about 23% lower on a like-for-like basis
- ONS: UK clothing store sales volume fell 1.2% in July
Ted Baker posted sales growth over the summer, helped by a healthy rebound in footfall following the easing of Covid-19 restrictions.
The fashion chain, which recently agreed to be bought for £211million, reported total sales in the 14 weeks to July 29 up 3.4 percent from the corresponding period last year.
High street sales rose by a fifth as consumers bought more full-price goods and newly launched ranges, although they were still down around 23 per cent compared to 2020 levels on a like-for-like basis.
Growth: Fashion chain Ted Baker, which recently agreed to be bought for £211m, reported total sales up 3.4 per cent in the 14 weeks to July 29
Wholesale receipts were also down by more than a third compared to two years ago as retail stores restocked after lockdown rules ended.
In comparison, royalty sales soared 62.3 percent, thanks to a rebound in travel and store footfall, which boosted demand for formalwear and children’s wear.
Online revenues were also slightly higher, although the lack of trade restrictions meant online shopping slowed down and there were problems with the group’s new e-commerce website.
Ted Baker warned that traffic and sales would continue to be impacted until issues with the site were resolved and that certain milestones would be missed during peak trading hours.
It also said it was “reflecting on the significant recent deterioration in the macroeconomic environment, falling consumer confidence and ongoing supply chain volatility.”
Clothing sales in many countries have declined in recent months as rising energy prices have forced shoppers to cut discretionary spending.
Ted Baker bosses recently accepted from Authentic Brands Group (ABG), parent company of Sports Illustrated magazine, Juicy Couture and Reebok.
Latest figures from the Office of National Statistics (ONS) showed that purchases in UK clothing stores fell 1.2 percent in July, after suffering a 3.9 percent drop in the previous month.
Zalando, Europe’s largest online clothing retailer, said in August that half-year earnings fell for the first time in its 14-year history as inflationary pressures mounted.
The share price has fallen by more than three-quarters over the past 12 months as the lockdown-induced boom in online shopping began to fade.
Ted Baker’s shares already fell significantly before the Covid-19 pandemic as the Glasgow-based group struggled with profit warnings, falling sales and an accounting error that left a £58million hole in its balance sheet.
They are down more than 96 percent from their 2015 peak and closed unchanged at £1.09 a share today.
That was slightly below the purchase price Ted Baker bosses recently accepted from Authentic Brands Group (ABG), parent company of Sports Illustrated magazine, Juicy Couture and Reebok.
ABG has announced that it will split the fashion label into two companies; an intellectual property holding company, and another division that handles store, online and wholesale operations.
A shareholder vote on the proposed acquisition is due September 29, with the acquisition expected to close sometime in the final quarter of 2022.
