Ted Baker slashes losses as consumers splash cash on party and office-wear once more
Ted Baker has narrowed its losses as the fashion brand edges closer to a private equity takeover.
The London-listed retailer posted a loss before tax of £44.1m, an improvement of 59.1 per cent, in preliminary results for the year ended 29 January 2022.
Ted Baker had suffered a £107.7m loss the year prior, after pandemic restrictions hammered high street retailers.
Group revenue hit £428.2m, with sales boosted some 20 per cent.
Strong sales momentum had continued into 2022 after “a steady return to the office and social events,” CEO Rachel Osborne said.
However, sharp headwinds were “likely to put pressure on the cost price of our products,” Ted Baker said yesterday. This could result in tighter margins and subdued profits, it warned.
Earlier this week, private equity giant Sycamore pulled out of the bidding war for the brand.
The retailer revealed it had now received several revised takeover proposals from other parties.
Authentic Brands Group, the management company behind Reebok and Forever 21, was reportedly considering making a bid for Ted Baker.
“The most urgent task for the new owner of Ted Baker is to revitalise the brand’s fading image,” Alex Smith, global sector lead at Third Bridge said.
“Our experts say that there are very few brands that have the sheer personality of Ted Baker and the value of a refresh could be huge,” Smith added.
“Hybrid working gets more entrenched every day, this leaves a big question mark over the future demand for formal workwear. Ted Baker is wisely moving away from formal occasion wear towards everyday.”
The retailer’s share price saw a minimal boost after the results, with shares rising 0.43 per cent on Thursday afternoon.