Ted Baker shares rose on Thursday morning after the fashion brand slashed its loss for the 28 weeks to 14th August.
Reported loss before tax for the period was reduced to £25.3m, down from £86.4m in the same period a year prior.
“I’m pleased with the continued progress we’re making, as we return to revenue growth, and make big strides back towards profitability. The brand remains healthy, delivering a stronger full price mix alongside encouraging early reactions to the new collection,” commented Rachel Osborne, Chief Executive Officer on the results.
Ted Baker shares rose as high as 145.2p in early trade on Thursday, before falling back to remain over 2% higher.
Despite a torrid couple of years for the brand, cash remained positive with a net cash position of £12.4m.
“Ted Baker’s half year results showed the fashion retailer is clawing its way back towards profitability as it works to restore its image as a premium brand. With weddings back on the social calendar and offices reopening, people are willing to spend more on their clothes and as a result Ted saw losses narrow as margins improved,” said Laura Hoy, Equity Analyst at Hargreaves Lansdown.
“The headline figures dress up a concerning decline in eCommerce sales though. Heavy promotional activity last year meant online sales were booming, so the group was up against tough comparisons. And we commend the group’s commitment to backing away from discounting, which eroded the brand image. Still, a double-digit decline in online sales is troubling.”
“A big part of Ted’s transformation plans rests on improving the group’s digital presence and progress on this front has been sluggish with management pushing back the launch of its new online platform to early 2022. While easing pandemic restrictions means people can return to in-person shopping, it doesn’t mean they will. Losing ground in e-commerce is bad no matter how you slice it. The online shopping boom hasn’t showed any signs of slowing, and the we would’ve like to see the same from Ted’s eCommerce sales.”