(Alliance News) - Ted Baker PLC on Thursday said its first half revenue increased due to a recovery in its retail store channel.
The London-based luxury clothing retailer said revenue in the 28 week period ended August 14, rose 18% to GBP199.3 million from GBP169.5 million in the 28 weeks to August 8.
Pretax loss narrowed to GBP25.3 million from a GBP86.4 million loss a year before.
Chief Executive Rachel Osborne said: "I'm pleased with the continued progress we're making, as we return to revenue growth, and make big strides back towards profitability. The brand remains healthy, delivering a stronger full price mix alongside encouraging early reactions to the new collection.
"The pandemic continues to impact the global retail environment, yet despite this we are delivering against our Transformation Plan. I remain confident that our turnaround of this great global lifestyle brand is on course and that Ted will emerge as a stronger business."
Retail store revenue increased 47% in the first half to GBP73.3 million from GBP49.8 million, while E-commerce revenue decreased 14% to GBP63.6 million from GBP74.2 million. Total Retail revenue was up 10% to GBP136.9 million.
Wholesale revenue increased 41% to GBP55.5 million from GBP39.5 million.
"The Covid-19 pandemic continued to affect the performance of the Retail channel, particularly stores, the majority of which were closed for part of the period to comply with local lockdowns or required to limit the number of customers shopping at one time. Footfall remained significantly below normal levels but showed some signs of recovery towards the end of the period as the effect of vaccine programmes reduced prevalence of the virus in many of our territories and consumers began to return to shops. This recovery has been slower in major city centres and airport locations, more reliant on office workers and tourists, than in shopping centres, out-of-town locations and smaller towns and cities," the group says.
In the third quarter, ended November 6, Ted Baker's revenue rose 18% and 20% on a constant currency basis.
E-commerce revenue for the third quarter was down 10% from last year but is up 4% versus the same period in financial 2020. Ted Baker said this "reflected the highly promotional comparatives from prior year and stronger full-price stance by the group."
Retail store revenue swung up 34% year on year in the third quarter, compared to being down 38% on the same period two years ago.
Ted Baker attributes this upswing in retail revenue to a recovery in its retail store channel.
The retailer said it is not paining a final dividend due to current trading conditions and a "high level of uncertainty about the future," but remains committed to restoring it long-term.
Going forward Ted Baker is also planning to launch a "new eCommerce platform", scheduled for early 2022.
The company did not give guidance for the current financial year but said "the board is comfortable with market consensus."
Shares were up 3.5% at 141.55 pence on Thursday London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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