23rd Feb 2022 10:57
(Alliance News) - Ted Baker PLC shares jumped on Wednesday after the company reported robust sales growth and improved margins in its fourth-quarter.
Shares were trading 17% higher at 103.00 pence each on Wednesday in London.
The London-based luxury clothing retailer said group sales in its fourth-quarter ended January 29 increased 35% compared to the same period a year before. Sales also rose 18% from those reported in the third quarter.
Ted Baker added that trading margins improved over 350 basis points across all channels.
During the second half, its full-price sales mix was up over 800 basis points.
Ted Baker's liquidity at year-end was "strong" with positive net cash of GBP3.0 million. The company also has a bank facility of GBP80 million in place.
The company still noted a negative impact from the emergence of the Omicron variant.
Retail sales in the final quarter were down 10% compared to pre-pandemic levels. During the surge of the variant, however, retail sales fell 42% against the comparable pre-Covid period.
Nonetheless, Ted Baker said that it is making good progress with its transformation plan to establish itself as a premium brand and reiterated its guidance for financial 2023. The company is confident in achieving free cash flow of GBP30 million and an earnings before interest, tax, depreciation, and amortization margin of 7% to 10% for the financial year.
"We continue to make good progress with our transformation and despite the impact of Omicron on the quarter, were pleased to deliver group sales up 35% compared with last year," Chief Executive Rachel Osborne said.
"The strong improvement in trading margin is encouraging, along with the increase in full-price sales mix, demonstrating the progress we're making as Ted reestablishes its premium brand positioning."
By Abby Amoakuh; [email protected]
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