Ted Baker, the global lifestyle brand, announces a 4.2% (7.5% in constant currency) increase in Group revenue for the 19 week period from 28 January 2018 to 9 June 2018, compared to the same period last year. This performance was achieved despite the impact of unseasonal weather across Europe and the East Coast of America in the early part of the period and, as previously reported, external trading conditions remaining challenging across many of our global markets.
Total retail sales including e-commerce increased by 0.7% for the period (3.6% in constant currency) and average retail square footage rose by 5.7% to 420,799 sq.ft (2017: 398,000sq ft). E-commerce, which is an integral and increasingly important component within our retail channel, performed very well with sales increasing by 33.6% (36.2% in constant currency). Our flexible business model, including a relatively low number of own stores, enables us to respond to structural changes in the retail sector.
Wholesale sales for the period increased by 14.2% (18.9% in constant currency) reflecting both a good performance from our UK and North American businesses and the earlier timing of wholesale deliveries. We continue to anticipate achieving at least high single digit growth (in constant currency) in the wholesale business for the full year.
Both retail and wholesale gross margins were in line with our expectations.
Our product and territorial licensees continued to perform well, reflecting the global strength and appeal of the brand. We are pleased with the performance of our product licences with notable performances from Childrenswear, Eyewear, Lingerie and Suiting.
Underpinned by the strength and the appeal of the Ted Baker brand and our balanced business model, the Group remains focussed on delivering the Board’s expectations for the full year. We intend to announce our interim results for the 28 weeks ending 11 August 2018 in early October 2018.
Commenting on trading, Ray Kelvin CBE, founder and chief executive said: “We are pleased with the customer responses to our collections as well as the brand’s continued expansion across each of its distribution channels.
We have made significant investment in our flexible business model to ensure that the Ted customer has multiple channels to engage with the brand. Our global e-commerce business continues to grow very strongly and is complemented by our unique stores and digital and social selling strategy, which showcase the brand to our customers.
The Group’s continued progress and growth is a reflection of the design and quality of our collections as well as the sustained appeal of the Ted Baker brand. These strengths, along with our business model and the passion, skill and commitment of our team mean that, despite an uncertain consumer outlook, we are well positioned to continue Ted Baker’s long-term development.”