Ted Baker saw pre-tax profit fall 19.5% to £17.8 million for the 53 weeks ended January 31.
However Ted Baker’s retail sales grew 14.8% to £118.2m over the 53 week period. Within that, UK and European stores showed an increase of 15.5% to £107.8m
Margin was down from 64.9% to 63.2%.
Ted Baker said that retail square footage at the year end was 202,206sq ft, up 22.4% on the previous year and that retail sales per square foot had fallen back just 3.7% to £651 despite difficult trading conditions.
“The economic climate remains uncertain and our expectations for the year ahead reflect this. However, we believe the Group is well placed to weather this difficult environment. We have a strong balance sheet and will continue to invest in the development of the Ted Baker brand worldwide and take advantage of opportunities that may arise.”
Ray Kelvin, chief executive, Ted Baker
Wholesale sales were down 12.2% to £34.4m over the 53 weeks. Ted Baker said that around 70% of the fall was attributable to actions it had taken in respect of brand distribution. It has been closing some of its wholesale accounts which it does not feel are appropriate for the brand.
Womenswear put in the strongest performance for Ted Baker, with sales rising 10.8% to £63.3m. Womenswear now represents 41.5% of total sales. Menswear sales were up 6.9% to £84.8m, representing 55.5% of total sales.
Ted Baker said that since the year end trading was slightly ahead of expectations but that it continued to experience difficult trading conditions in its overseas markets.
Ted Baker added that wholesale sales would continue to fall this year because its stockists were cautious when placing forward orders. It added it would continue with its program of rationalisation of its wholesale accounts and that it would convert some of its wholesale business to retail concessions. It anticipated a fall in wholesale sales of at least the same level for the current year.
Ted Baker chief executive Ray Kelvin said: “I am pleased to report that the group has delivered a good result for the year in a very challenging environment. This creditable performance can be attributed to the passion and
commitment of our team, the strength of the Ted Baker brand, our quality and attention to detail and the resilience of our multi-channel distribution strategy.”
“The economic climate remains uncertain and our expectations for the year ahead reflect this. However, we believe the group is well placed to weather this difficult environment. We have a strong balance sheet and will continue to invest in the development of the Ted Baker brand worldwide and take advantage of opportunities that may arise.”