Ted Baker PLC (LSE:TED) said sales accelerated over the key Christmas period despite the impact of Omicron and was confident it will reconfirm its financial targets set out in 2020.
The upmarket retail said it expects to report £30m in free cash flow and EBITDA margin (pre IFRS16) of 7-10% for fiscal 2023.
Sales grew 35% in the 12 weeks to 29 January compared to Q4 FY2021 and were up from 18% reported at Q3.
Trading margin also improved, with an increase of more than 350 bps across all channels. Full-price sales were up by over 800 basis points over the previous year in the 24 weeks to January 29.
"We continue to make good progress with our transformation,” Rachel Osborne, Chief Executive Officer said in a statement.
“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.”
There was a "modest impact on product availability" due to global supply chain disruptions, according to the retailer.
Demand slowed during the Omicron surge from mid December, but has bounced back "as customers have returned to foreign travel".
Over the next three years, the company plans to open at least three new stores per year in the UK under a new franchise agreement.
"We were particularly pleased with the performance of Womenswear, with bags, footwear and tops all selling well, and a strong initial reaction to the Spring/Summer 2022 collection," said Osborne.
According to the company, the search for a new chairperson is proceeding as planned.