6th Dec 2018 08:25
LONDON (Alliance News) - Ted Baker PLC on Thursday reported a "resilient" performance amid challenging trading conditions, as the fashion retailer also continues to respond to allegations of harassment against its founder and chief executive.
For the 16 weeks to December 1, the upmarket retailer said group revenue decreased by 0.2% on the prior year, due to an anticipated decline in wholesale sales, which fell 6.5%.
However, a good retail sales performance, up 2.3% including e-commerce, "largely offset" the overall decline.
E-commerce, on a standalone basis, saw sales up 18%, representing now 30% of the retailer's total sales.
"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," Ted Baker said.
Looking ahead, the company said that the last four weeks saw retail sales up 4.0%, "as the weather became more typical for the season".
The upcoming period, with the run-up to Christmas, will be key to determine the retailer's performance for the year. Ted Baker said it will release a trading statement covering the period between December 2 and January 5 in mid-January.
"The board remains mindful of the challenging markets in which the group operates and is focussed on making further progress for the full year," it added.
Ted Baker has in the past week being rocked by a harassment scandal, after a Sky News report on Sunday revealed that the company's staff had launched a online petition to put an end to forced "hugging" and inappropriate touching and comments by Founder & Chief Executive Ray Kelvin.
The complainants claimed Kelvin would give unwanted hugs, shoulder massages and kisses on the back of their ears at the company's London head office.
On Thursday, Ted Baker confirmed the appointment of Herbert Smith Freehills LLP to conduct an independent external investigation into the allegations.
The retailer has formed an independent committee of non-executive directors to ensure concerns are carefully considered and appropriate responses are taken forward.
Ted Baker shares were trading up 1.2% at 1,484.00 pence, recovering some of the losses suffered after the claims were discovered. The stock remains down 19% this week.
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TED.L