TIDMTED
RNS Number : 6903O
Ted Baker PLC
11 February 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
11 February 2021
Ted Baker Plc ("Ted Baker", the "Group")
Q4 / Pre-close trading update
For the 13-week period from 1 November 2020 to 30 January 2021
("the Period")
Transformation plan on track despite COVID disruption
Ted Baker Plc, the global lifestyle brand, today provides an
update on trading for the 13-week period from 1 November 2020 to 30
January 2021.
Rachel Osborne, Chief Executive Officer, commented:
"We continue to make strong progress on our transformation
programme, delivering against all of our year-one operational
targets. Over the period, we have moved forward on the three key
pillars of our plan in refreshing and re-energising the product and
brand, prioritising digital and capital light growth with the
announcement today of a further licensing partner and through our
cost savings programme.
"While we have made encouraging strategic progress, trading over
the fourth quarter was difficult and heavily impacted by the Covid
pandemic, leading to the closure of many of our stores during the
period and a lack of demand for outerwear and occasionwear over the
festive season in particular. Looking forward, we are taking a
cautious planning approach and now assume that UK stores will
remain closed until the end of May followed by a gradual recovery
over the rest of the first half.
"Despite these challenges, our robust balance sheet and strong
cash position leave us well placed for the future and we remain
confident that Ted will emerge from Covid a stronger and more
resilient business."
Q4 trading and financial highlights:
-- Group revenue fell year on year by 47% for the Period. The
Group has seen a material negative impact from the COVID pandemic.
This includes the closure of the entire UK store portfolio for the
majority of the trading period as well as large parts of our
international store portfolio and, when stores were open, footfall
shifted towards out-of-town and neighbourhood retail locations
where we have minimal physical presence. In addition, sales have
been adversely affected by a decline in outerwear and occasionwear
demand during the Christmas period.
o Reported Retail sales decreased 47%, reflecting a material
decline in footfall and stores being closed for part of the Period
and selective permanent closures where commercial lease agreements
could not be reached with landlords.
o Directly operated eCommerce sales increased 2%, despite the
lack of demand for outerwear and occasionwear, reflecting enhanced
payment methods, improved trading mechanics and increased
investment in digital media. Group eCommerce sales decreased 1% and
represented 63% of total retail sales (2020: 33%).
o Wholesale and licence revenue decreased by 44%. The
performance reflects cautious ordering from store-based trustees
since the beginning of COVID and Brexit related shipping delays
towards the end of the period.
o The China, Hong Kong and Macau JV continues to see robust
sales growth, with 14% sales growth during the period and 33% on
mainland China.
-- As of 30 January 2021, net available liquidity was GBP199.7m
comprising GBP66.7m of cash and GBP133m of bank facilities. The
Group did not draw on any bank facilities during the period. The
Group has material liquidity headroom against anticipated peak cash
requirements in September/October 2021.
Q4 strategic and operational highlights:
-- The Group is pleased to announce a new licencing agreement
demonstrating ongoing progress on its Digital and asset light
growth strategy:
o Bedeck as a new product licence partner for bedding and
towels. Bedeck will take on the category from January 2022, with a
key priority to expand the global reach of Ted Baker with these
products.
-- Territory licencees and JV partners have opened a combined 3
new stores during the period.
-- New Global Creative, Anthony Cuthbertson, joined the Group in
mid-November 2020 and has worked quickly with the design teams on
refreshing and reenergising the product and brand. The new design
team's first full collection will be the AW21 collection. This has
been shown virtually in our newly re-designed head office showroom
and initial feedback has been encouraging.
-- Our casual offer has been sought out by our customers. Sell
through rates have been above average on tops, trousers,
accessories and footwear.
-- The Ted Baker brand continues to show healthy momentum with
web traffic up 17% and new customer growth was +8%.
-- A new eCommerce platform, which will significantly improve
functionality and flexibility remains on track for launch at the
end of Q1 2021.
-- Cost savings identified during the year have been achieved
across payroll with an annualised saving of GBP31m and rent savings
of GBP3m in line with our upgraded targets.
Outlook
Group trading has continued to be negatively affected by
COVID-related restrictions, with material negative impact from
physical store closures across Retail and Wholesale channels. The
Group now assumes an ongoing materially negative impact across both
channels from store closures until end May 2021, followed by a
phased recovery until the end of the first half.
Following the trade agreement between the UK and EU signed in
late December 2020, the Group anticipates up to GBP5m of
incremental costs associated with Brexit, reflecting extra duty and
shipping costs partially offset by a new customs warehouse
capability.
Ted Baker will announce its results for the 53-week period ended
30 January 2021 on 27 May 2021.
Enquiries:
Ted Baker Plc Tel: +44 (0) 20 7255
4800
Rachel Osborne, Chief Executive Officer
David Wolffe, Chief Financial Officer
Tulchan Communications Tel: +44 (0) 20 7353
4200
Jonathan Sibun/Jessica Reid tedbaker@tulchangroup.com
Media images available for download at:
http://www.tedbakerplc.com/ted/en/mediacentre/imagelibrary
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements.
These forward-looking statements include matters that are not
historical facts or are statements regarding the Group's
intentions, beliefs or current expectations concerning, among other
things, the Group's results of operations, financial condition,
liquidity, prospects, growth, strategies, and the industries in
which the Group operates. Forward-looking statements are based on
the information available to the Directors at the time of
preparation of this announcement and will not be updated during the
year. The Directors can give no assurance that these expectations
will prove to have been correct. Due to inherent uncertainties,
including both economic and business risk factors underlying such
forward-looking information, actual results may differ materially
from those expressed or implied by these forward-looking
statements.
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END
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