Ted Baker has released a trading update on Thursday for the 16-week period from 11 August to 1 December. The global life style brand has outlined its “resilient performance despite challenging external trading conditions” during the period.
Group revenue decreased by 0.2% during the period when compared to last year’s results. The company has said that this figure reflects the anticipated decline in wholesale sales as a result of the timing of delivers. Indeed, the company insists that poor delivery timing has largely impacted its retail sales performance.
Wholesale sales for the period dropped by 6.5%. This result was anticipated because of the timing of wholesale deliveries in the first half of the year.
Ted Baker has also outlined the challenging external trading conditions that impacted a variety of its markets.
Trade in the UK, Europe and the East Coast of America was affected by “unseasonal weather”. Moreover, the group was also hit by the “well-publicised” challenges faced across the UK high street.
One leading high street name who has been hit by the challenging trading climate is John Lewis, reporting a 99% fall in its profits. In fact, the UK high street is currently facing the toughest conditions in the past five years. Following the UK’s scorching summer of World Cup success, retail sales dropped by 0.8%, a much larger drop than anticipated.
Total retail sales including e-commerce increased by 2.3% across the period. Additionally, e-commerce sales increased by 18.0%. These sales are a significantly important component of the group’s retail channel. Indeed, e-commerce represents 30.3% of total retail sales for the period.
CBE, Founder and Chief Executive of Ted Baker, Ray Kelvin, commented on the results:
“We are pleased with the brand’s continued expansion, which is a reflection of the strength of the Ted Baker brand and the design and quality of our collections.”
“The investment in our flexible business model ensures that the Ted customer has multiple channels to engage with the brand and underpins our long term development. Our global e-commerce business continues to grow well and is complemented by our digital marketing strategy and unique stores that showcase the brand.”
Earlier this week, shares in the group fell 13% following a petition accusing Ted Baker’s owner of inappropriate comments and behavior.
At 12:33 GMT today, shares in Ted Baker plc (LON:TED) were trading at +1.02%.