Ted Baker posts 35 percent growth in Q4 sales

Ted Baker has reported a 35 percent year-on-year increase in group sales in the fourth quarter in the 12 weeks to January 29.

Compared to Q4 pre-pandemic levels, retail sales were running at negative 10 percent before Omicron warnings, falling to 42 percent during the Omicron surge.

Commenting on the update, Rachel Osborne, Ted Baker’s chief executive officer, said: “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 percent compared with last year.”

She continued: “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 re-establishes its premium brand positioning.”

Ted Baker confirms FY23 outlook

The company saw trading margin improve over 350 bps across all channels. Across the second half, full price sales mix was up over 800 bps.

Ted Baker has reconfirmed FY23 targets, which include 30 million pounds free cash flow and EBITDA margin of 7-10 percent.

The group has signed a new franchise agreement in the UK, with plans for at least three new store locations per year over the next three years.

Ted Baker has also expanded home and bedding product licence with Bedeck to include North America, making it a global licence agreement starting July 2022 and Jack Victor licence for North America for a further five years.