* Overall performance ahead of base-case scenario
* Online trading significantly ahead of expectations
* Shares up 9%
(Adds shares, analyst, background)
By Tanishaa Nadkar
July 21 (Reuters) - British fashion retailer Ted Baker's
has performed better than expected, showing further
signs of recovery under its new chief executive, sending its
shares up as much as 16%.
The company was struggling before the coronavirus crisis,
hit by a string of profit warnings, management changes and an
accounting scandal since founder Ray Kelvin stepped down as CEO
last year after misconduct allegations, which he denies.
Ted Baker, known for its suits, shirts and dresses with
quirky details, said online sales were significantly ahead of
expectations and that increased social media engagement and
targeted digital marketing had stimulated sales, in line with
new CEO Rachel Osborne's transformation plan.
"The scale of progress made under the new management team
has been truly extraordinary," Liberum analysts said. "The
delivery against very clear targets and more immediate
milestones highlights a clear direction from the new management
team."
As part of a turnaround, Ted Baker said previously announced
job cuts are expected to save 12 million pounds ($15.2
million)in the current financial year and 27 million pounds on
an annualised basis, while spending has been restricted to less
than 10 million pounds for the 2021 financial year.
Online sales, which have climbed to 69% of total retail
sales from 25% last year, jumped 35% for the 11 weeks to July
18, Ted Baker said.
The company's shares rose 16% on the news before paring
gains. By 0821 GMT the shares were up 9.3% at 77.6 pence.
Ted Baker, which had reopened 95% of its stores by the end
of last week, said group revenue for the 11-week period was down
55% year on year at 60.9 million pounds, beating a base-case
scenario provided last month.
Ted Baker said it will continue to withhold forecasts for
the financial year to Jan. 30.
($1 = 0.7882 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru
Editing by Shounak Dasgupta and David Goodman)