11th Feb 2021 10:46
(Alliance News) - Ted Baker PLC on Thursday said trading over the fourth quarter was "difficult" and considerably hurt by the Covid-19 pandemic.
Shares in Ted Baker were down 4.4% at 99.75 pence in London in morning trading.
The London-based luxury clothing retailer said for the period between November 1 and January 31, group revenue and reported retail sales were down 47% from 2019's figure.
This was a result of its entire UK store portfolio and large parts of its international store portfolio being closed for the majority of the period. Sales were affected by a decline in outerwear and occasionwear demand during the Christmas period due national lockdown restrictions in England, it added.
Directly operated e-commerce sales in the quarter were up 2% from 2019, which Ted Baker said reflected enhanced payment methods, improved trading mechanics and increased investment in digital media.
Wholesale & Licence sales decreased by 44% in the quarter compared to last year, which the retailer believes is due to cautious ordering from store-based trustees since the beginning of the pandemic and Brexit-related shipping delays towards the end of the period.
"While we have made encouraging strategic progress, trading over the fourth quarter was difficult and heavily impacted by the Covid pandemic, leading to the closure of many of our stores during the period and a lack of demand for outerwear and occasionwear over the festive season in particular. Looking forward, we are taking a cautious planning approach and now assume that UK stores will remain closed until the end of May followed by a gradual recovery over the rest of the first half," said Chief Executive Rachel Osborne.
"Despite these challenges, our robust balance sheet and strong cash position leave us well-placed for the future, and we remain confident that Ted will emerge from Covid a stronger and more resilient business," Osborne added.
Additionally, Ted Baker has signed a new licencing agreement with Bedeck, which will be its new bedding and towels partner from January 2022. This new agreement is in order to expand Ted Baker's global reach with these products.
By Zoe Wickens; [email protected]
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