Interim Results

Ted Baker Plc

("Ted Baker", the "Group")

Interim Results Announcement for the 28 weeks ended 11 August 2018

'Continued progress in challenging trading conditions'

· Group revenue up 3.5% (5.5% in constant currency) to £306.0m

· Retail sales including e-commerce up 1.1% (up 2.9% in constant currency) to £220.1m

· UK and Europe retail sales up 1.0% (up 0.7% in constant currency) to £147.1m

· North America retail sales up 1.8% (up 8.1% in constant currency) to £61.8m

· Rest of the World retail sales down 1.8% (up 1.8% in constant currency) to £11.2m

· E-commerce sales up 24.1% (up 25.7% in constant currency) to £53.0m

· Planned expansion continued with:

· Two new stores in the UK, three new stores in the US, one new store in Spain, two new outlets in Germany and one new outlet in France

· Further concessions with leading department stores across the UK, Europe and North America

· Licensee openings in India, Kazakhstan, Malaysia, Mexico, Singapore, Taiwan and Ukraine

· Wholesale sales up 10.1% (up 12.8% in constant currency) to £85.9m

· Licence income up 11.7% to £10.9m

· Measured and controlled approach to cost saving initiatives savings due to our business model

Commenting, Ray Kelvin CBE, Founder and Chief Executive, said:

"Ted Baker has continued to develop and expand as a global lifestyle brand across its markets and distribution channels despite challenging external trading conditions. This continued growth is testament to the strength of the Ted Baker brand, the design and quality of our collections as well as the dedication and talent of our teams.

Whilst we believe that the second half of the year will remain challenging due to external factors, we are well positioned to continue Ted Baker's long-term development. Our flexible business model ensures that our customer has multiple channels to engage with Ted Baker and our global e-commerce business continues to expand, supported by our digital marketing strategy and unique stores that showcase the brand."

www.tedbaker.com

www.tedbakerplc.com

Media images available for download at:

http://www.tedbakerplc.com/ted/en/mediacentre/imagelibrary

Notes to Editors

Ted Baker Plc - "No Ordinary Designer Label"

Ted Baker is a leading global lifestyle brand distributing across five continents through its three main distribution channels: retail (including e-commerce); wholesale; and licensing.

Ted Baker has an increasing global presence with 544 stores, concessions and outlets worldwide comprising: 201 in the UK; 116 in Europe; 129 in North America; 89 in the Middle East, Asia and Africa; and 9 in Australasia.

We offer a wide range of collections: Menswear; Womenswear; Global; Phormal; Endurance; Accessories; Bedding; Childrenswear; Crockery; Eyewear; Footwear; Fragrance and Skinwear; Gifting and Stationery; Jewellery; Lingerie and Sleepwear; Luggage; Neckwear; Rugs; Suiting; Technical Accessories; Tiles; and Watches.

Development of the Brand

Our strategy is to further develop as a leading global lifestyle brand, based on three main elements:

· considered expansion of our collections. We review our collections continually to ensure we react to trends and meet our customers' expectations. In addition, we look for opportunities to extend the breadth of our collections and enhance our offer;

· controlled distribution through three main channels: retail (including e-commerce); wholesale and licensing. We consider each new opportunity to ensure it is right for the brand and will deliver margin-led growth; and

· carefully managed development of existing and new international markets. We continue to manage growth in existing territories while considering new territories for expansion.

Underlying our strategy is an emphasis on design, product quality and attention to detail, which is delivered by the passion, commitment and dedication of our teams, licence partners and wholesale customers.

Chairman's Statement

The first half of the year has continued to see challenging external trading conditions across many of our global markets. In addition, performance has been impacted by unseasonable weather across the UK and Europe and North America in the early part of the year and a very hot summer across the UK and Europe. Despite this difficult backdrop, Group revenue increased by 3.5% (5.5% in constant currency1) and profit before tax and exceptional items2 increased by 3.5% to £25.0m (2017: £24.2m) for the 28 weeks ended 11 August 2018 (the "period"). Reported profit before tax decreased by 3.2% to £24.5m (2017: £25.3m).

Against the backdrop of these challenging trading conditions, retail sales (including e-commerce) increased by 1.1% to £220.1m (2.9% in constant currency1). Our e-commerce business is an integral and increasingly important component within our retail proposition and has performed well, delivering sales growth of 24.1% (25.7% in constant currency1). Average retail square footage increased by 5.5%. Our flexible business model, including a relatively low number of own stores, and strong brand enables us to adapt to structural changes in the retail sector.

Wholesale sales increased by 10.1% (12.8% in constant currency1) to £85.9m with a good performance from our UK business, a strong performance from our North American business and the earlier timing of deliveries. We anticipate achieving mid to high single-digit growth (in constant currency1) in the wholesale business for the full year.

Licence income increased by 11.7% to £10.9m as both our product and territorial licences continued to perform well. During the period, our licence partners opened further stores in India, Kazakhstan, Malaysia, Mexico, Singapore and Taiwan. We also opened our first licensed partner store and first licensed partner concession in Ukraine. There were notable performances from our product licensees in Childrenswear, Eyewear, Fragrance and Skinwear and Suiting.

We are pleased to have signed two new global licence agreements. In June, we signed a new men's underwear and loungewear global licence with Delta Galil. Since the period end, we signed a new global watch licence with Timex Group, allowing us to benefit from their expertise and long history as an authentic watchmaker. Both of these new partners reflect our commitment to working with the best product specialists that are able to support our status as a truly global lifestyle brand.

We have successfully implemented the final phase of the Microsoft Dynamics AX System across our UK and European business and, as previously stated, we remain on track to complete the final phases of this project in Asia towards the end of this financial year. This will allow us to continue to enhance our efficiency, streamline operations and support the development of the business.

In July, we commenced the transition to our new distribution facility in North America. Once fully operational, this will serve our retail, wholesale and e-commerce businesses across North America supporting our long-term growth strategy.

Since the period end, the Group entered into an agreement with Pentland Group Plc, our footwear licensee since 2001, to acquire the issued share capital of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC. Pentland currently holds the exclusive global licence to manufacture and distribute footwear under the Ted Baker brand. The aggregated sales for both companies for the year ended 31 December 2017 totalled £39.8m. Approximately 25% of these were sales to Ted Baker. The acquisition will complete on 31 December 2018 and is expected to be earnings enhancing for the year ending 25 January 2020 and beyond. This is an exciting opportunity for us to drive further growth in our footwear business, by leveraging our global footprint and infrastructure.

Financial Results

Group revenue increased by 3.5% (5.5% in constant currency1) to £306.0m (2017: £295.7m) for the 28 weeks ended 11 August 2018. The composite gross margin decreased to 58.3% (2017: 58.9%).

Distribution costs, which comprise the cost of retail operations and distribution centres, increased by 3.2% (5.2% in constant currency1) to £121.6m (2017: £117.8m). Distribution costs before exceptional items2 increased by 2.7% to £121.1m and as a percentage of sales, they remained broadly consistent at 39.6% (2017: 39.8%) reflecting the variable elements of costs in our business model.

Administrative expenses increased by 3.1% (4.7% in constant currency1) to £41.6m (2017: £40.4m). Administrative expenses before exceptional items2 increased by 0.4% to £41.6m (2017: £41.5m) and as a percentage of sales decreased to 13.6% (2017: 14.0%). This decrease is a result of a measured and controlled approach to multiple cost saving initiatives across the central functions of the business.

Dual running costs incurred in respect of our systems roll-out were £1.3m (2017: £1.2m) in the first half of the year. We would expect to incur further costs of £1.1m in the second half of the year.

Exceptional costs of £0.6m (2017: income of £1.1m) related to debtor balances owed by House of Fraser which are no longer expected to be recovered following its entry into administration on 10 August 2018.

The net foreign exchange loss during the period of £0.1m (2017: gain £0.4m) was due to the translation of monetary assets and liabilities denominated in foreign currencies. Net interest payable during the period was £1.9m (2017: £1.6m).

Profit before tax and exceptional items2 increased by 3.5% to £25.0m (2017: £24.2m) and profit before tax decreased by 3.2% to £24.5m (2017: £25.3m). Adjusted earnings per share3, which excludes exceptional items, increased by 5.0% to 43.8p (2017: 41.7p) and basic earnings per share decreased by 1.8% to 42.8p (2017: 43.6p).

The forecast effective tax rate of 22.2% (2018 full year effective rate: 23.3%) is higher than the forecast UK corporation tax rate for the period of 19%, largely due to higher overseas tax rates and the non-recognition of losses in overseas territories where the brand is still in its development phase.

The net decrease in cash and cash equivalents of £24.4m (2017: £30.6m) primarily reflected an increase in working capital, further capital expenditure to support our long-term development and the payment of the full year dividend. During the period, we made repayments of £3.0m (2017: £3.0m) on the secured term loan used to purchase The Ugly Brown Building.

Total working capital, which comprises inventories, trade and other receivables and trade and other payables, increased by £31.3m to £188.2m (2017: £156.9m). This was mainly driven by an increase in inventories of £31.7m to £208.2m (2017: £176.4m) reflecting the projected growth of our business, some earlier phasing of stock deliveries between the first and second half of the year and to a lesser extent, the impact of the movement in foreign exchange rates. We have been focussed on a number of working capital initiatives that will start to deliver benefits by the year end.

Trade and other receivables decreased by £0.5m to £65.4m (2017: £65.9m) and trade and other payables decreased by £0.2m to £85.3m (2017: £85.5m).

Capital expenditure of £18.7m (2017: £19.4m) comprised the costs of opening and refurbishing stores, concessions and outlets. It also reflected the on-going investment in business-wide systems, e-commerce and infrastructure, including our distribution centres in the UK and North America to support our continued growth. We expect full year capital expenditure to be in line with previous guidance of £30.0m, subject to the timing of planned openings.

Dividends

The Board has declared an interim dividend of 17.9p (2017: 16.6p), representing an increase of 7.8%, which will be payable on 23 November 2018 to shareholders on the register at the close of business on 12 October 2018.

People

Against a backdrop of difficult market conditions, the performance in the period is a testament to our talented teams across the world, whose commitment and passion remain key to our success. I would like to take this opportunity to thank all of my colleagues for their continued hard work as we continue to grow the business and further develop Ted Baker as a global lifestyle brand.

Global Group Performance

*Operating contribution (excluding exceptional items) is defined as operating profit before exceptional items as a percentage of revenue

**Operating contribution is defined as operating profit as a percentage of revenue

***Excludes licence partner stores

Retail

Our retail channel comprises stores, concessions and e-commerce, providing a multichannel customer experience. We operate stores and concessions across the UK and Europe, North America, Asia and Africa and localised e-commerce sites in the UK, continental Europe, the US, Canada and Australia. We also operate e-commerce sites with some of our concession partners. Our unique stores showcase the Ted Baker brand and are key to the growth and success of our e-commerce business. Our relatively low number of own stores and higher number of concession locations allows us to maintain a flexible store business model.

Retail sales were up 1.1% (2.9% in constant currency1) to £220.1m (2017: £217.7m). Performance was impacted by unseasonable weather across the UK and Europe and North America in the early part of the period, a very hot summer across the UK and Europe, and challenging external trading conditions, particularly in the UK. The growth was driven by continued investment across the retail channel in new stores and our e-commerce platforms. We are pleased with our e-commerce performance, where sales grew 24.1% (25.7% in constant currency1) to £53.0m (2017: £42.7m) and represented 24.1% (2017: 19.6%) of total retail sales.

The total growth in retail sales of 1.1% (2.9% in constant currency1) compares to an increase in average retail square footage of 5.5% to 422,343 sq ft (2017: 400,313 sq ft). Retail sales per square foot (excluding e-commerce) decreased 9.4% (decrease of 7.8% in constant currency1) to £396 (2017: £437) demonstrating the challenging external trading conditions together with changing customer behaviour with customers shopping both online and in store.

The retail gross margin decreased to 64.2% (2017: 65.6%) as a result of a measured increase in promotional activity in response to the challenging external trading conditions.

Retail operating costs increased by 2.2% (4.2% in constant currency1) to £116.5m (2017: £114.0m), and as a percentage of retail sales increased to 52.9% (2017: 52.4%).

Wholesale

Our wholesale business in the UK serves countries across the world, particularly in the UK and Europe, as well as supplying products to stores operated by our territorial licence partners. In addition, we operate a wholesale business in North America serving the US and Canada.

Wholesale sales increased by 10.1% (12.8% in constant currency1) to £85.9m (2017: £78.0m) reflecting a good performance from our UK business, a strong result from our North American business and the earlier timing of deliveries.

The wholesale gross margin increased to 43.4% (2017: 40.2%). This was as a result of a greater proportion of wholesale sales to our trustee partners which carry a higher margin than sales to our retail licence partners and some foreign exchange benefit in the current year.

Licence Income

We operate both territorial and product licences. Our territorial licences cover selected countries in Europe, North America, the Middle East, Asia, Australasia and Africa, where our partners operate licensed retail stores and concessions and, in some territories, wholesale operations. Our product licences cover Bedding, Childrenswear, Crockery, Eyewear, Footwear, Fragrance and Skinwear, Gifting and Stationery, Jewellery, Lingerie and Sleepwear, Luggage, Neckwear, Rugs, Suiting, Technical Accessories, Tiles and Watches.

Licence income was up 11.7% to £10.9m (2017: £9.7m) with both product and territorial licences performing well. There were notable performances from our product licensees in Childrenswear, Eyewear, Fragrance and Skinwear and Suiting.

Collections

We are pleased with the positive reactions to our Ted Baker Womenswear collection with sales up 7.8% to £191.3m (2017: £177.4m). Womenswear represented 62.5% (2017: 60.0%) of total sales in part due to the increased proportion of e-commerce sales where we experience a higher proportion of Womenswear sales.

Ted Baker Menswear sales were down 3.0% to £114.7m (2017: £118.3m). Sales were impacted by the challenging trading conditions within our UK business. Menswear represented 37.5% of total sales (2017: 40.0%).

Geographic Performance

United Kingdom and Europe

*Excludes licence partner stores

Retail sales in the period in the UK and Europe increased 1.0% (0.7% in constant currency1) to £147.1m (2017: £145.6m) despite challenging trading conditions, particularly in our concession business with House of Fraser in the lead up to its administration in August 2018. Performance was also impacted by unseasonable weather across the period.

E-commerce sales increased by 22.8% (22.9% in constant currency1) to £42.6m (2017: £34.7m) demonstrating how e-commerce sales are an integral part of the retail proposition in the UK and European markets. As a percentage of UK and Europe retail sales, e-commerce sales represented 29.0% (2017: 23.8%).

Sales per square foot excluding e-commerce sales decreased 10.4% in constant currency1, however, our stores remain key to the success of the e-commerce business through initiatives such as order in store, click and collect, as well as showcasing the brand.

During the period, we opened one store in London Bridge, one in London Luton Airport and one in Barcelona Airport, together with three outlets; one in Lyon, France and one in each of Neumunster and Weirtheim, Germany. We closed one store in France. We opened further concessions with premium department stores in France, Germany, the UK and Spain. We also opened our first licence partner store in Ukraine. We are pleased with the performance of our new stores and remain positive about longer term growth opportunities for our brand.

Sales from our UK wholesale business increased 9.8% to £54.9m (2017: £50.0m). This reflected a good performance from sales to trustees, particularly those with a strong online customer proposition, and our growing European export business.

North America

*Excludes licence partner stores

We remain confident that the Ted Baker brand is becoming more established and continuing to gain recognition in this territory.

Sales from our retail division increased by 1.8% (8.1% in constant currency1) to £61.8m (2017: £60.7m) driven by our continued expansion and sales per square foot excluding e-commerce sales decreased 3.5% in constant currency1.

In the period, we opened new stores in Austin, Orlando and San Francisco and further concessions across North America. In addition, we opened a further licence partner store in Mexico.

Our e-commerce business delivered a strong performance with sales increasing by 26.1% (35.8% constant currency1) to £8.7m (2017: £6.9m). As a percentage of North America retail sales, e-commerce sales represented 14.1% (2017: 11.4%).

Sales from our North American wholesale business increased by 10.7% (18.0% in constant currency1), to £31.0m (2017: £28.0m) reflecting a strengthening relationship with key trustees that attract domestic customers across North America. This further demonstrates increasing brand recognition in this territory.

Rest of the World

*Excludes licence partner stores

We continue to develop the Ted Baker brand across the Middle East, Asia, Africa and Australasia through our retail and licensing channels.

In Asia, sales decreased 1.8% (increased 1.8% in constant currency1) to £11.2m (2017: £11.4m) and sales per square foot excluding e-commerce sales decreased 4.4% in constant currency1. We continue to refine and develop our strategy for success in Asia. In China we closed one store, one concession and one outlet and in Hong Kong we closed one store.

Our e-commerce concession businesses in China and Japan performed well with sales of £1.7m (2017: £1.1m) which as a percentage of Asian retail sales represented 15.2% (2017: 9.6%).

Our licensed stores across the Middle East, Asia and Africa continued to perform well. Our existing licence partners opened new stores in India, Kazakhstan, Malaysia, Singapore and Taiwan. As at 11 August 2018, we operated a total of 66 partner stores (2017: 53).

The joint venture with our Australian licence partner, Flair Industries Pty Ltd, continues to perform well. As at 11 August 2018, we operated 9 stores in Australasia (2017: 10 stores).

Current Trading and Outlook

Global markets have continued to see challenging external trading conditions which have impacted performance. In the UK, Europe and the East Coast of America, trade has also been affected by the unseasonably hot weather in September. In addition, trading in the UK has been impacted by the well-publicised challenges facing some of our trading partners.

Our Autumn / Winter collections have been well received and we are confident that we remain well positioned to continue the brand's momentum and long term development.

Retail

In the UK and Europe, we have continued our measured and controlled expansion with our first outlet opening in Italy and further concession openings in Germany and Spain. We plan to open a new outlet in London later this year. We will continue to invest in our e-commerce sites to enhance the customer experience.

In North America, we have continued our expansion with a new store in Chicago and will continue to develop our presence with plans to open a store in San Diego later this year.

In the Rest of the World, we remain focused on building brand awareness, as we are still in the relatively early stages of investment in these markets.

Wholesale

In our wholesale business, we anticipate reporting mid to high single-digit sales growth (in constant currency1) for the full year.

Licence Income

Our product and territorial licences continue to perform well. Since the period end, our licence partners have opened stores in Saudi Arabia and Thailand with further licence partner store openings planned in Dubai, India and Saudi Arabia. We also plan to open licence partner stores in new territories, including our first store in Kosovo.

Outlook

We have a very clear strategy for the continued expansion of Ted Baker as a global lifestyle brand across both established and newer markets. Our flexible business model ensures that our customers have multiple channels to engage with the brand. Our growing e-commerce business, underpinned by stores that showcase the brand, mean that we are well positioned to deal with the structural changes in an evolving retail environment and continue Ted Baker's long-term development.

The board is mindful of the uncertainties in its markets over the second half of the year, but remains focussed on making further progress for the full year. We intend to make our next trading update, covering the period since the start of the second half of the financial year, in early December.

David Bernstein CBE

Non-Executive Chairman

4 October 2018

NOTES:

1 Constant currency comparatives are obtained by applying the exchange rates that were applicable for the 28 weeks ended 12 August 2017 to the financial results in overseas subsidiaries for the 28 weeks ended 11 August 2018 to remove the impact of exchange rate fluctuations.

2 Profit before tax and exceptional items is a non-GAAP measure. For further information about this measure, and the reasons why we believe it is important for an understanding of the performance of the business, please refer to Note 3 of the Financial Statements.

3 Adjusted basic earnings per share is a non-GAAP measure. For further information about this measure, and the reasons why we believe it is important for an understanding of the performance of the business, please refer to Note 3 of the Financial Statements.

4 Operating contribution (excluding exceptional items) is a non-GAAP measure. For further information about this measure, and the reasons why we believe it is important for an understanding of the performance of the business, please refer to Note 3 of the Financial Statements.

Condensed Group Income Statement

For the 28 weeks ended 11 August 2018

Condensed Group Statement of Comprehensive Income

For the 28 weeks ended 11 August 2018

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 11 August 2018

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 12 August 2017

Condensed Group Statement of Changes in Equity - Audited

For the 52 weeks ended 27 January 2018

Condensed Group Balance Sheet

At 11 August 2018

Condensed Group Cash Flow Statement

For the 28 weeks ended 11 August 2018

Notes to the Condensed Interim Financial Statements

For the 28 weeks ended 11 August 2018

1. Basis of preparation

a. Reporting entity

Ted Baker Plc ("the Company") is a company domiciled in the United Kingdom. The condensed interim financial statements ("interim financial statements") of Ted Baker Plc as at, and for the 28 weeks ended 11 August 2018 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group financial statements as at, and for the 52 weeks ended 27 January 2018 are available upon request from the Company's registered office at Ted Baker Plc, The Ugly Brown Building, 6a St. Pancras Way, London NW1 0TB and at www.tedbakerplc.com.

b. Statement of compliance

These interim financial statements have been prepared in accordance with "IAS 34 Interim Financial Reporting" as adopted by the EU and the requirements of the Disclosures and Transparency Rules. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group financial statements as at, and for the 52 weeks ended 27 January 2018. These interim financial statements were approved by the Board of Directors on 4 October 2018.

The comparative figures for the 52 weeks ended 27 January 2018 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified; (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. These sections address whether proper accounting records have been kept, whether the Company's accounts are in agreement with these records and whether the auditor has obtained all the information and explanations necessary for the purposes of the audit.

The financial information in this document is unaudited, but has been reviewed by the auditor in accordance with the Auditing Practices Board guidance on Review of Interim Financial Information.

c. Going concern

The Group financial statements for the 52 weeks ended 27 January 2018, approved by the Board on 22 March 2018, included information on the business environment in which the Group operates, including the factors that are likely to impact the future prospects of the Group, together with the principal risks and uncertainties that the Group faces. In addition, the notes to the consolidated financial statements set out the Group's objectives, policies and processes for managing its financial and capital risk and its exposures to credit, market and liquidity risk. Many of the risks and uncertainties reported are such that their potential to impact the Group's operations are inherent and remain valid as regards to their potential impact during the second half of the financial year ending 26 January 2019.

The directors have prepared trading and cash flow forecasts for a period of one year from the date of approval of these interim financial statements. The directors have a reasonable expectation that the Group has adequate cash headroom and expects to meet all banking covenant requirements. Accordingly, they continue to adopt a going concern basis in preparing the financial statements of the Group.

d. Significant accounting policies

This is the first set of the Group financial statements, where IFRS 15 and IFRS 9 have been applied. There was no impact on the previously reported numbers from application of IFRS 15. Changes to significant accounting policies from application of IFRS 9 are disclosed below.

The adoption of IFRS 9 has no material impact on the Group's financial statements. Under IAS 39, the cash flow hedge reserve relating to cash flow hedges of foreign currency risk associated with forecast inventory purchases were subsequently reclassified to inventory and the amount was presented within the Group Statement of Comprehensive Income. Under IFRS 9, the amounts accumulated in the cash flow hedge reserve are instead included directly in the initial cost of the inventory item when it is recognised and are no longer presented within the Group Statement of Comprehensive Income. Prior year balances have not been restated.

IFRS 16 replaces existing leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases - Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

The standard is effective for annual periods beginning on or after 1 January 2019. Early adoption is permitted.

IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low value items. Lessor accounting remains similar to the current standard i.e. lessors continue to classify leases as finance or operating leases.

The Group has completed an initial assessment of the potential impact on its consolidated financial statements but has not yet completed its detailed assessment. The actual impact of applying IFRS 16 on the financial statements in the period of initial application will depend on future economic conditions, including the Group's borrowing rate, the composition of the Group's lease portfolio at that date, the Group's latest assessment of whether it will exercise any lease renewal options and the extent to which the Group chooses to use practical expedients and recognition exemptions.

Thus far, the most significant impact identified is that the Group will recognise new assets and liabilities for its operating leases of stores. As at 27 January 2018, the Group's future minimum lease payments under non-cancellable operating leases amounted to £266,691,000 on an undiscounted basis.

2. Segment information

Segment revenue and segment result