High street recovery buoys Ted Baker sales ahead of 211m US takeover
Fashion brand Ted Baker has revealed that recovering store footfall helped support higher sales over the past quarter as it prepares for its US takeover.
Last month, the retail business agreed a £211 million takeover by Authentic Brands Group, the US owner of Reebok and Juicy Couture.
Shareholders will vote on the move on September 29, with the deal expected to complete in the final quarter of 2022.
On Friday, Ted Baker told shareholders that overall revenues rose by 3.4% over the three months to July compared with the same period last year.
Store sales grew by 20.4% over the period, as shoppers returned to the high street following the relaxation of Covid curbs.
However, online sales slid by 13.2% for the quarter compared with the same period a year earlier.
Ted Baker said it was “impacted by challenges following the launch of the new e-commerce platform alongside consumers returning to shop in stores”.
Meanwhile, wholesale revenues declined by 14.1% and licence revenue rose by 62.3% as a result of a high street sales boost.
Ted Baker added that it has seen “good momentum” from its new ranges in recent months but highlighted that sales of discounted products were “slower than expected”.
The business said it expects to see a continued increase in customer numbers in stores, while it also hopes to benefit from the continued recovery in global recovery.
However, it highlighted that it still faces economic challenges over the coming year.
“We remain mindful of the significant recent deterioration of the macro-economic environment, falling consumer confidence and continued volatility in the supply chain as we move towards Ted Baker’s event-led peak trading season,” the company said.
Published: by Radio NewsHub