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Ted Baker posts higher sales but e-commerce falls

Last updated: 08:48 07 Sep 2021 BST, First published: 08:03 07 Sep 2021 BST

Ted Baker PLC - Ted Baker posts higher sales but e-commerce falls

Ted Baker PLC (LSE:TED) said that trading momentum continues to build, with sales in the last four weeks growing compared to the second quarter, though e-commerce has remained weak.

North American concessions, North American and UK shopping malls have improved as consumer confidence recovered, but sales in other markets have been slower.

READ: Ted Baker slashes rent bill with head office switch

The fashion designer said the Autumn/Winter 2022 collections have been positively received by customers, with encouraging early sales.

However, the new e-commerce platform will go live later than expected due to technical issues, although it is not expected to impact sales.

In the quarter to 14 August, sales surged 50% also thanks to fewer promotions.

Online sales dropped 25% and represented 39% of total retail sales.

Store sales were 142% higher than last year but 45% below 2019 due to lower footfall, which continues to be stronger in out-of-town and regional locations where Ted Baker has a smaller physical presence.

The group opened two new short-term lease stores in the UK, in Bromley and Exeter, to expand into these non-metro centre locations, with another one planned during the financial year.

At period-end, net liquidity was £105.8mln including £15.8mln of cash and £90mln of bank facilities.

“Our transformation programme remains on track, and 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 and through our cost savings programme,” said chief executive Rachel Osborne.

According to analysts at Hargreaves Lansdown, the fact that online sales have fallen back was "particularly worrying" as the group "needed to inject its digital operations with a big dose of energy".

"The company attributes this to fewer discounts during the period, which although is welcome, it still shows that shoppers were lured by offers of a bargain rather than a desire to snap up coveted new styles," said senior analyst Susannah Streeter.

"Customers have so far given the Autumn/Winter collection the thumbs up with the pace of early purchases encouraging as weddings and Christmas parties return. But there is little so little breathing space, buying teams will have to nail the right look season after season, to bring back the custom the company has been elusively searching for."

Shares dipped 1% to 165.12p on Tuesday morning.

--Adds analyst comment, shares--

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