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Share Name Share Symbol Market Type Share ISIN Share Description
Ted Baker Plc LSE:TED London Ordinary Share GB0001048619 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -4.00 -2.88% 135.10 135.00 135.50 138.50 135.00 137.10 49,611 09:33:40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 352.0 -107.7 -56.2 - 249

Ted Baker PLC Q2 Trading Update

07/09/2021 7:00am

UK Regulatory (RNS & others)


Ted Baker (LSE:TED)
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From Aug 2021 to Oct 2021

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RNS Number : 9047K

Ted Baker PLC

07 September 2021

7 September 2021

Ted Baker Plc ("Ted Baker", the "Group")

Q2 2022 / Pre-close trading update

For the 16-week period from 25 April 2021 to 14 August 2021 ("the Period")

Sales in line with expectations, significant improvement in full price mix

Ted Baker Plc, the global lifestyle brand, today provides an update on trading for the 16-week period from 25 April 2021 to 14 August 2021.

Q2 Highlights

-- Sales in line with expectations, with continued Covid-impact leading to different speeds of recovery across key markets.

   --    Group sales growth of 50% compared to Q2 FY2021 

-- Trading momentum continued to build through the period, with the last four week exit rate for Retail better than the overall Q2 performance for Retail sales.

-- North American concessions, North American and UK shopping malls showing improved performance as consumer confidence recovered.

-- Trading margin improved over +500 bps due to significantly better full price mix across all retail channels. Re-establishing our premium positioning has meant moving away from the aggressive promotional stance in Q2 last year, negatively impacting the sales performance of eCommerce relative to last year.

   --    Ongoing strong stock control led to clean inventory position at end of the period. 
   --    Transformation plan on track; solid progress against operational KPIs set for fiscal 2022. 

-- Brand remains strong; recent YouGov survey recognised Ted Baker as second most popular luxury brand in the UK.

-- Autumn/Winter 2022 collections positively received by Ted customers, with encouraging early sales. Newness working well, with positive response to new product pyramid structure.

-- Signed new global HQ, Gorgeous Brown Building. New lease deal secured rental savings of GBP3.3m p.a. compared to the option to lease for Block A of the Tribeca development in Kings Cross.

-- The Group has made good progress on the work for the new eCommerce platform, but some technical aspects have taken longer than expected to fully resolve. Given the proximity to the upcoming peak trading period and need to fully test its business readiness and stability ahead of implementation, we will move the go live date to early 2022. This date change will have no material impact on the performance of our eCommerce business .

-- Further strengthened the Board with the appointment of two independent Non-Executive Directors, Fumbi Chima and Meg Lustman.

   --    Continued progress with our Fashioning a Better Future Programme. 

Rachel Osborne, Chief Executive Officer, commented:

"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.

"Our transformation programme remains on track, and we have moved forward on the three key pillars of our plan in refreshing and re-energising the product and brand, prioritising digital and capital light growth and through our cost savings programme.

"The Ted Baker brand remains strong, evidenced by YouGov's recognition of Ted Baker as the second most popular luxury brand in the UK. Our product also continues to strengthen, and we are pleased by the start to the Autumn/Winter 2021 collections which is being well received by our customers. Combined with our robust balance sheet and strong cash management we are well placed for the future. 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."

Q2 financial and operational highlights:

-- Group revenue grew year-on-year by 50% for the period as we snapped back from the material negative impact from the COVID pandemic.

-- Reported Retail sales increased 30% vs Q2 FY2021 but were 30% below Q2 FY2020. Stronger exit rate from Q2 FY2022, as Retail sales improved sequentially throughout the period.

-- Sales growth affected four percentage points due to change accounting for our Japanese and Chinese businesses as this moved from Retail to licence and JV.

-- Store sales were +142% vs Q2 FY2021 and -45% vs Q2 FY2020. While many of our stores were open during the trading period, footfall remains below prior levels and continues to be stronger in out-of-town and regional locations where we have a smaller physical presence.

-- Our non-metro centre stores continue to show a healthy recovery. We anticipate a similar trading pattern in the second half, as metro centres and travel retail recover more slowly than our 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% and represented 39% of total retail sales (2021: 67%), reflecting highly promotional stance last year ahead of balance sheet recapitalisation. Compared to Q2 FY2020, Group eCommerce sales increased 17%.

-- Wholesale and licence revenue increased by 151% and decreased 29% compared to Q2 FY2020. Several of our newer licence partners have seen positive momentum during Q2, including Next and Baird.

-- Our eyewear licence partners, among the biggest in the Group, continue to show robust performance, up 72% compared to Q2 FY2021 and up 27% compared to Q2 FY2020.

-- Retail trading margin improved by over 500 basis points vs Q2 FY2021 and +190bp vs Q2 FY2020 as the Group prioritised full price trading stance.

-- As of 14 August 2021, net liquidity was GBP105.8m comprising GBP15.8m of cash and GBP90m of bank facilities. The Group has material liquidity headroom against anticipated peak cash requirements in September/October 2021.

Appointment of Non-Executive Directors - additional disclosure

Further to our announcement on 4 August 2021, relating to the appointments of Fumbi Chima and Meg Lustman as Non-Executive Directors of the Company, there are no further disclosure requirements under Listing Rule 9.6.13 in respect of these appointments.

Ted Baker will announce its results for the 28-week period ended 14 August 2021 on 11 November 2021.

The Group will host a conference call for analysts and investors to discuss this announcement at 8.45am today. Dial-in details are as follows:

UK +44 330 336 9127

Passcode: 8111188

 
 Enquiries: 
 Ted Baker Plc                               Tel: +44 (0) 20 7255 
                                              4800 
 Rachel Osborne, Chief Executive Officer 
 David Wolffe, Chief Financial Officer 
 
 Tulchan Communications                     Tel: +44 (0) 20 7353 
                                             4200 
 Jonathan Sibun/Jessica Reid                tedbaker@tulchangroup.com 
 

Media images available for download at:

http://www.tedbakerplc.com/ted/en/mediacentre/imagelibrary

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates. Forward-looking statements are based on the information available to the Directors at the time of preparation of this announcement and will not be updated during the year. The Directors can give no assurance that these expectations will prove to have been correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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END

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(END) Dow Jones Newswires

September 07, 2021 02:00 ET (06:00 GMT)

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