Ted Baker revenues recover as full-price sales rebuild following lockdowns

The fashion retailer said group sales jumped 50% year on year during the 16 weeks to August 14, after scaling back on the “aggressive” promotional activity of last year.  

Reported retail revenues were up 30% compared with last year, but remained 30% below the same period in 2019, prior to the onset of the coronavirus crisis. 

Despite that, Ted Baker said sales were “in line with expectations”, as margins improved by more than 500 bps amid “significantly better” full-price sales.

The retailer said performance at its stores in UK and US shopping centres, and its US concessions, improved particularly strongly during the period.

Sales made through its physical stores more than doubled compared with last year, when all of its shops were impacted by Covid-related lockdowns and social-distancing restrictions. However, store sales remained 45% below pre-pandemic levels.

Online sales slipped 25% year on year and now account for 39% of Ted Baker’s total retail sales. Compared with the second quarter of 2019/20, ecommerce sales were up 17%.

Ted Baker said revenue from its wholesale and licence division surged 151% year on year, although that level remained 29% below the same period in 2019.

Ted Baker chief executive Rachel Osborne said the retailer had made “encouraging progress” as it bids to “re-establish our premium lifestyle brand positioning” through fewer promotions and greater full-price sales.

Osborne added: “It is still early days in the recovery, but we are confident that Ted is starting to emerge from Covid a stronger and more resilient business.”