The return of high-street shoppers boosted Ted Baker’s sales as the British fashion brand geared up for a U.S. acquisition.
- The fashion chain recently agreed to a £211m acquisition by Authentic Brands Group.
- Ted Baker’s retail sales decreased approximately 23% on a like-for-like basis
- ONS: UK clothing store sales volume fell 1.2% in July
Ted Baker’s sales grew this summer, fueled by a healthy recovery in store visits following the easing of Covid-19 restrictions.
The fashion chain, which recently agreed to be acquired for £211m, reports a 3.4% increase in total sales in the 14 weeks to 29 July compared to the same period last year. .
High street sales increased by one-fifth as consumers bought more full-price and new product launches, but were still down about 23% on an equivalent basis compared to 2020 levels. increase.
Growth: Fashion chain Ted Baker, which recently agreed to a £211m acquisition, reports a 3.4% increase in total sales in the 14 weeks to 29 July.
Wholesale revenues were also down by more than a third compared to two years ago as retailers restocked inventories as lockdown rules ended.
By comparison, license sales increased 62.3% as demand for formal wear and children’s clothing increased due to a recovery in travel and in-store foot traffic.
Lack of transaction limits led to a slowdown in online shopping, and online revenue also increased slightly despite problems with the group’s new e-commerce site.
Ted Baker warned that traffic and sales will continue to be affected until the website issues are resolved, and that certain milestones during peak trading periods may be missed.
“We are mindful of the recent significant deterioration in the macroeconomic environment, declining consumer confidence and continued volatility in supply chains,” he said.
Apparel sales in many countries have fallen in recent months as higher energy prices forced shoppers to cut back on discretionary spending.
Ted Baker’s boss was recently hired from Authentic Brands Group (ABG), parent company of Sports Illustrated magazine, Juicy Couture and Reebok.
Recent figures from the Office for National Statistics (ONS) show that the value of clothing store purchases in the UK fell 1.2% in July from a 3.9% hit the previous month.
Zalando, Europe’s largest online clothing retailer, revealed in August that worsening inflationary pressures had led to a decline in half-year earnings for the first time in its 14-year history.
The company’s stock has plummeted by more than three-quarters over the past 12 months as the boom in online shopping caused by lockdowns begins to wane.
Ted Baker’s share price fell before the Covid-19 pandemic as the Glasgow-based group suffered profit warnings, declining sales and accounting errors that left a £58m hole in its balance sheet It had already fallen in value significantly.
Down more than 96% from its peak in 2015, it closed today at £1.09 per share.
That’s just a touch below the acquisition price Ted Baker’s boss recently received from Sports Illustrated magazine, Juicy Couture, and Authentic Brands Group (ABG), parent company of Reebok.
ABG has said it plans to split its fashion label into two businesses. An intellectual property holding company and separate divisions responsible for store, online and wholesale operations.
A shareholder vote on the proposed acquisition is scheduled for September 29, and the acquisition is expected to close during the final quarter of 2022.