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Ted Baker: Annual profits drop by 26.1 percent

By Prachi Singh

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Business

Ted Baker Group revenue increased by 4.4 percent or 5 percent in constant currency to 617.4 million pounds (814.6 million dollars), which the company said, were driven by a 4.2 percent or 4.8 percent in constant currency increase in retail sales to 461 million pounds (608 million dollars)) and a 4.8 percent or 5.7 percent in constant currency increase in wholesale sales to 156.5 million pounds (206.4 million dollars). The company said, profit before tax and exceptional items was 63 million pounds (83 million dollars) compared to 73.5 million pounds and profit before tax was 50.9 million pounds (67 million dollars), down 26.1 percent against 68.8 million pounds in 2018.

Commenting on the company’s results, Ted Baker’s Acting Chief Executive Officer, Lindsay Page said in a statement: “Ted Baker has continued to grow across each of the brand’s distribution channels despite difficult trading conditions across a number of the group’s global markets.”

Review of Ted Baker’s full year results

Ted Baker womenswear sales were up 11.8 percent to 382.2 million pounds (504 million dollars) and represented 61.9 percent of total sales. Ted Baker menswear sales were down 5.8 percent to 235.2 million pounds (310.3 million dollars) and represented 38.1 percent of total sales. Licence income grew by 3.1 percent to 22.1 million pounds (29.1 million dollars).

Retail sales in UK and Europe increased by 4.6 percent or 4.5 percent in constant currency to 315 million pounds (415.6 million dollars), which was, the company said, despite the widely reported ongoing difficult trading conditions, unseasonable weather at different points throughout the period and the impact on our concession business with House of Fraser in the lead up to its administration in August 2018. Ecommerce sales increased by 18.8 percent to 98 million pounds (129.2 million dollars) and as a percentage of UK and Europe retail sales, e-commerce sales represented 31.1 percent. Sales from UK wholesale business, increased by 6 percent to 99.7 million pounds (131.5 million dollars).

Sales from the retail division in North America increased by 4.7 percent or 7 percent in constant currency to 125.7 million pounds (165.7 million dollars), while ecommerce business in the region delivered a growth of 26.4 percent or 28.5 percent in constant currency to 20.6 million pounds (27.1 million dollars). Sales from North American wholesale business increased by 3.1 percent or 5.4 percent in constant currency to 56.8 million pounds (74.9 million dollars).

Retail sales in Rest of the World decreased 4.7 percent or 2.9 percent in constant currency to 20.3 million pounds (26.7 million dollars), which Ted Baker said was, partly due to the prior year transition of retail operations in South Korea to a distributor as well as a further refinement of the store portfolio in this territory.

The company added that its board is recommending a final dividend of 40.7p per share, making a total for the period of 58.6p per share, a decrease of 2.5 percent on the prior period, which will be paid on June 22, 2019 to shareholders on the register on May 18, 2019.

Picture:Ted Baker media gallery

Ted Baker