UK fashion brand Ted Baker said first-half group revenues fell 0.7%, or 2.5% in constant currencies, to £303.8 million.
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For the first 28 weeks of 2019, the London-based Ted Baker said retail sales including e commerce sales were down 2.5%, or 4.1% in constant currencies, to £214.5 million. Up close, online sales dipped 1.3% to £52.3 million for eight-month period ending August 10.
Locally, UK and Europe retail sales decreased 3.9% to £141.3m, while North America retail sales were up 3.1% to £63.7m. However, Ted Baker’s Rest of the World retail plummeted 15.2%, or 17.2% in constant currencies, to £9.5 million, forcing the brand to rejig its retail strategy in emerging markets for future growth.
“We are continuing to pro-actively manage the significant challenges impacting our sector including weak consumer spending, macro-economic uncertainty, and the accelerating channel shift towards e-commerce,” said Lindsay Page, Chief Executive of Ted Baker.
“However, we are not immune to these pressures, which have impacted our financial performance during the first half of the year,” continued Lindsay.
The British company made a loss of £2.7m before tax/exceptional items and the new IFRS accounting standard, compared to a profit of £25m a year ago.
During the period, Ted Baker announced the creation of a joint venture in China, Hong Kong and Macau with Shanghai LongShang Trading Company Ltd in April.
“We are very excited about the next stage in the growth of Ted Baker across the significant Chinese market,” said Page at the time of the deal earlier in the year.
“Over recent years we have invested in introducing the Ted Baker brand to Chinese customers, and we are confident that the creation of this JV will build on this platform and deliver meaningful long-term growth.”
More recently, the group announced the appointment of a new licence partner in Japan — Sojitz Infinity. The deal means Ted Baker will convert is directly-operated business into a licence, taking the number of its global retail licence partners to 17.
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Founded in 1988 by Ray Kelvin, Ted Baker has 560 shops and concessions around the world, including 201 in the UK.