Ted Baker reported a surge in year-end sales on Wednesday, despite the impact of Omicron, sending its shares higher.
The fashion retailer said group sales had improved 35% year-on-year in the 12 weeks to 29 January, or by 18% from the third quarter, despite footfall remaining “challenging” during the Omicron surge especially. There was also a “material step-down in demand” from mid-December onwards, because of the variant’s rapid spread.
The trading margin improved by 350 basis points across all channels year-on-year, with the retail trading margin ahead by over 200 bps.
As at 10015 GMT, shares in Ted Baker were ahead 14% at 100.2p.
Rachel Osborne, chief executive, said: “We continue to make good progress with our transformation, and despite the impact of Omicron on the quarter were pleased to deliver group sales up 35%.
“The strong improvement in trading margin is encouraging, along with the increase in full price sales, demonstrating the progress we’re making as Ted Baker re-establishes its premium brand positioning.”
Looking to the current year, Osborne said that there had been a “strong initial reaction” to the spring/summer 2022 collection, adding: “Ted Baker is emerging from Covid a strong, more sustainable business.”
Like most fashion retailers, Ted Baker – which has nearly 400 locations in the UK, mainland Europe and North America – was rocked by the pandemic as demand slumped for work clothes and formalwear.
It is also half-way through a turnaround under Osborne, who took over after founder Ray Kelvin left the company in 2019.
The group also reiterated it targets for the 2023 full-year on Wednesday, which include £30m free cash flow and EBITDA margin of between 7% and 10%.
