TED.L Regulatory News (TED)

12 June 2018

Ted Baker Plc

("Ted Baker" or the "Group")

Trading Update

For the 19 week period from 28 January 2018 to 9 June 2018

"Focussed on delivering full year expectations, despite challenging external trading conditions"

Ted Baker, the global lifestyle brand, announces a 4.2% (7.5% in constant currency) increase in Group revenue for the 19 week period from 28 January 2018 to 9 June 2018 (the "period"), compared to the same period last year. This performance was achieved despite the impact of unseasonal weather across Europe and the East Coast of America in the early part of the period and, as previously reported, external trading conditions remaining challenging across many of our global markets.

Total retail sales including e-commerce increased by 0.7% for the period (3.6% in constant currency) and average retail square footage rose by 5.7% to 420,799 sq.ft (2017: 398,000 sq.ft). E-commerce, which is an integral and increasingly important component within our retail channel, performed very well with sales increasing by 33.6% (36.2% in constant currency). Our flexible business model, including a relatively low number of own stores, enables us to respond to structural changes in the retail sector.

Wholesale sales for the period increased by 14.2% (18.9% in constant currency) reflecting both a good performance from our UK and North American businesses and the earlier timing of wholesale deliveries. We continue to anticipate achieving at least high single digit growth (in constant currency) in the wholesale business for the full year.

Both retail and wholesale gross margins were in line with our expectations.

Our product and territorial licensees continued to perform well, reflecting the global strength and appeal of the brand. We are pleased with the performance of our product licences with notable performances from Childrenswear, Eyewear, Lingerie and Suiting.

Underpinned by the strength and the appeal of the Ted Baker brand and our balanced business model, the Group remains focussed on delivering the Board's expectations for the full year. We intend to announce our interim results for the 28 weeks ending 11 August 2018 in early October 2018.

Commenting on trading, Ray Kelvin CBE, Founder and Chief Executive said:

"We are pleased with the customer responses to our collections as well as the brand's continued expansion across each of its distribution channels. 

We have made significant investment in our flexible business model to ensure that the Ted customer has multiple channels to engage with the brand. Our global e-commerce business continues to grow very strongly and is complemented by our unique stores and digital and social selling strategy, which showcase the brand to our customers.

The Group's continued progress and growth is a reflection of the design and quality of our collections as well as the sustained appeal of the Ted Baker brand. These strengths, along with our business model and the passion, skill and commitment of our team mean that, despite an uncertain consumer outlook, we are well positioned to continue Ted Baker's long-term development."

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of the Company is Charles Anderson, Finance Director & Company Secretary.

Enquiries:

Further information:

www.tedbaker.com / www.tedbakerplc.com

Media images available for download at:

www.tedbakerplc.com/ted/en/mediacentre/imagelibrary

LEI: 549300HN14450OU4IL77

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates.

Forward-looking statements are based on the information available to the Directors at the time of preparation of this announcement, and will not be updated during the year. The Directors can give no assurance that these expectations will prove to have been correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.

About Ted Baker Plc - "No Ordinary Designer Label"

Ted Baker is a global lifestyle brand that operates through three main distribution channels: retail, which includes e-commerce; wholesale; and licensing, which includes territorial and product licences.

We distribute through our own and licensed retail outlets, leading department stores and selected independent stores in the UK and Europe, North America, the Middle East, Africa, Asia and Australasia.

The brand continues to go from strength to strength driven along in part by its unconventional approach to product and design. Never forgetting its roots as a shirt specialist but always with an eye on the future, Ted is continuously innovating through its collections, store environments and now with digital and social media initiatives that foster a truly omnichannel view for its growing and highly engaged global audience. 

The brand offers a wide range of collections including: Menswear; Womenswear; Global; Phormal; Endurance; Accessories; Bedding; Childrenswear; Crockery; Eyewear; Footwear; Fragrance and Skinwear; Gifting and Stationery; Jewellery; Lingerie and Sleepwear; Luggage; Neckwear; Rugs; Suiting; Technical Accessories; Tiles; and Watches.

Ted Baker is a truly global lifestyle brand with 542 stores and concessions worldwide, comprised of 201 in the UK, 112 in Europe, 129 in North America, 91 in the Middle East, Africa and Asia and 9 in Australasia.

The global expansion of the Ted Baker brand continued during the period from 28 January 2018 to 9 June 2018 with successful openings in Austin Texas, London Bridge, London Luton Airport, our first German outlet in Neumunster and further concession openings in premium department stores in France, the UK and Spain. Our territorial licence partners opened stores in India, Kazakhstan, Malaysia, Mexico, Ukraine, Singapore, South Korea and Taiwan.