Fashion retailer Ted Baker has posted an improvement in annual performance and was upbeat about prospects after an encouraging start to the new financial year.

Ted Baker

Ted Baker’s group revenue advanced 20.5% year on year in the period to January 29

Ted Baker said it had benefited from post-pandemic trends such as the return to offices and social events, as well as from progress with its turnaround strategy.

Group revenue advanced 20.5% year on year in the period to January 29, when underlying pre-tax losses were reduced from £59.2m to £38.4m – an improvement of 31.5%.

In the first quarter of the new year, to April 22, group sales rose 20% versus the previous year as a return to offices, weddings and travel created “positive headwinds”.

Group sales during the quarter were still down 37% on the comparable period in 2020, however, and the retailer said it was “mindful” of inflation and cost-of-living pressures on consumers.

The retailer reported a positive response to its latest ranges and a rise in the full-price sales mix. It said the second quarter had got off to an encouraging start in the UK and Europe, but in the US business was “adversely impacted by availability and ecommerce platform disruption”.

Ted Baker chief executive Rachel Osborne said: “We continue to make good progress against our transformation plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker’s growth as a global lifestyle brand.

“That momentum has continued into the new year, supported by a steady return to the office and social events. While we remain mindful of what is a challenging macro environment, we are well-positioned for growth.

“The positive response to our SS22 collection and the recent launch of our new digital platform, supported by our strong brand, capital-light strategy and well-established distribution channels give us confidence in Ted Baker’s future.”

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