TIDMTED
RNS Number : 7493B
Ted Baker PLC
11 June 2019
11 June 2019
Ted Baker Plc
("Ted Baker" or the "Group")
Trading Update
For the 19 week period from 27 January 2019 to 8 June 2019
Difficult trading period with ongoing external challenges
impacting performance
Current outlook and profit guidance
Ongoing consumer uncertainty in a number of key markets and
elevated levels of promotional activity across our global markets
have resulted in extremely difficult trading conditions during the
financial year to date. The Board anticipates some of these
external factors will continue to impact trade for the Group and
its trading partners across the remainder of the financial year. As
a result, at this early stage in the year, the Group now
anticipates underlying profit before tax(1) for the year ending 25
January 2020 to be in the range of GBP50m to GBP60m. This reflects
the Board's view of anticipated trading for the rest of the year,
the positive impact of new product initiatives and planned cost
efficiencies.
Ted Baker intends to announce its interim results for the 28
weeks ending 10 August 2019 in early October 2019.
Trading update
Ted Baker announces a 3.8% (1.9% in constant currency) increase
in Group revenue for the 19 week period from 27 January 2019 to 8
June 2019 (the "Period"), compared to the same period last year.
The performance reflects difficult and unpredictable trading
conditions, unseasonable weather experienced across North America
in the early part of the Period and the highly promotional retail
environment across our global markets. We also experienced some
challenges with our Spring/Summer collections and these have been
appropriately addressed.
Total retail sales including e-commerce decreased by 0.3% for
the Period (1.8% decrease in constant currency) and average retail
square footage rose by 5.3% to 443,036 sq.ft (2019: 420,779 sq.ft).
E-commerce sales increased by 2.4% (1.2% in constant currency) and
represented 26.0% of total retail sales (2019: 25.3%).
Wholesale sales for the Period increased 14.2% (11.4% in
constant currency).
The Period benefitted from incremental footwear revenue,
following the acquisition of No Ordinary Shoes Limited and No
Ordinary Shoes USA LLC, which completed on 1 January 2019. The
table below sets out the sales performance both including the
incremental revenue from the acquisition and on a comparable
basis.
Including acquisition revenue On a comparable basis
Reported Constant Currency Reported Constant Currency
---------- -------------------- --------- ------------------
Retail (0.3%) (1.8%) (1.1%) (2.6%)
---------- -------------------- --------- ------------------
Wholesale 14.2% 11.4% (1.2%) (3.6%)
---------- -------------------- --------- ------------------
Group 3.8% 1.9% (1.1%) (2.9%)
---------- -------------------- --------- ------------------
As a result of the highly promotional retail environment both
retail and wholesale gross margins are lower than last year.
In light of the challenging start to the financial year,
management are actively focused on product initiatives and cost
control. Monthly product drops and speed to market projects will
commence in the coming weeks. Furthermore, we are driving further
efficiencies through our sourcing and supply chain, as well as our
ongoing focus on net working capital initiatives.
Commenting on trading, Lindsay Page, Chief Executive Officer
said:
"Ted Baker remains an outstanding brand and, underpinned by the
strength of our flexible business model, including a relatively low
number of own stores that showcase the brand, we remain confident
in our long-term growth prospects.
As a team, we are proactively addressing the challenges we face
as an industry. Several of our new product initiatives will
commence imminently and we are confident in our collections for the
coming season. We are relentlessly focused on achieving cost
efficiencies as well as further cost savings throughout the
business.
We remain committed to the long-term development and expansion
of Ted Baker as a global lifestyle brand. Over recent years, we
have made a number of significant investments to ensure that the
Group is well positioned to continue to adapt to structural changes
in the retail sector."
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of the Company is Charles Anderson, Finance Director &
Company Secretary.
(1) Underlying profit before tax excludes previously announced
costs in respect of IFRS 16 'Leases', the income statement impact
of the accounting for the acquisition of No Ordinary Shoes Limited
and No Ordinary Shoes USA LLC, costs in respect of the Mainland
China, Hong Kong and Macau Joint Venture and external investigation
costs.
Ted Baker Tel: +44 (0) 20
7255 4800
Lindsay Page, Chief Executive Officer
Charles Anderson, Finance Director & Company
Secretary
Phil Clark, Commercial Director
Hudson Sandler Tel: +44 (0) 20
7796 4133
Alex Brennan / Hattie Dreyfus / Nick Moore
Enquiries and further information:
www.tedbaker.com
www.tedbakerplc.com
Media images available for download at:
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. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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