Ted Baker PLC Trading Update (6007J)
December 06 2018 - 2:00AM
UK Regulatory
TIDMTED
RNS Number : 6007J
Ted Baker PLC
06 December 2018
6 December 2018
Ted Baker Plc
("Ted Baker" or the "Group")
Trading Update
For the 16 week period from 11 August 2018 to 1 December
2018
Resilient performance despite challenging external trading
conditions
Ted Baker, the global lifestyle brand, announces a 0.2% (0.4% in
constant currency) decrease in Group revenue for the 16 week period
from 11 August 2018 to 1 December 2018 (the "period"), compared to
the same period last year. This reflected the anticipated decline
in wholesale sales due to the timing of deliveries, largely offset
by the retail sales performance. This result was achieved despite
the continuing challenging external trading conditions across our
markets. In the UK, Europe and the East Coast of America, trade was
affected by the unseasonal weather at the start of the period and
trading in the UK continues to be impacted by the well-publicised
challenges facing some of our trading partners.
Total retail sales including e-commerce increased by 2.3% (2.1%
in constant currency) for the period and average retail square
footage rose by 5.2% to 427,586 sq.ft (2017: 406,258 sq.ft).
E-commerce sales, which are an integral and increasingly important
component within our retail channel, increased by 18.0% (15.3% in
constant currency) and represented 30.3% (2017: 26.3%) of total
retail sales for the period. Total retail sales for the last eight
weeks of the period increased by 4.0% as the weather became more
typical for the season.
As anticipated, wholesale sales for the period decreased by 6.5%
(7.0% in constant currency) due to the earlier timing of wholesale
deliveries in the first half of the year. We continue to anticipate
mid to high single-digit wholesale sales growth (in constant
currency) for the full year.
Both retail and wholesale gross margins were in line with our
expectations.
Our product and territorial licensees continued to perform well,
reflecting the global strength and appeal of the brand. We opened
licensed stores in India, Kosovo, Saudi Arabia, Singapore and South
Korea.
The Board remains mindful of the challenging markets in which
the Group operates and is focussed on making further progress for
the full year.
Commenting on trading, Ray Kelvin CBE, Founder and Chief
Executive said:
"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."
Ted Baker intends to make its next trading statement covering
the period from 2 December 2018 to 5 January 2019 in mid-January
2019.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of the Company is Charles Anderson, Finance Director &
Company Secretary.
Post Trading Update
Following the Company's announcement on 3 December 2018, the
Company confirms that it has appointed Herbert Smith Freehills LLP,
a leading and independent law firm, to conduct an independent
external investigation into the reports received. Herbert Smith
Freehills LLP will report into a committee of the Company's
Non-Executive Directors that will be chaired by Sharon Baylay.
Ted Baker Tel: +44 (0) 20
7255 4800
Lindsay Page, Chief Operating Officer
& Group Finance Director
Charles Anderson, Finance Director & Company
Secretary
Hudson Sandler Tel: +44 (0) 20
7796 4133
Alex Brennan / Hattie O'Reilly / Nick
Moore
Enquiries and further information:
www.tedbaker.com
www.tedbakerplc.com
Media images available for download at:
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.
END
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