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Ted Baker PLC on Friday cautioned over falling consumer confidence heading into its peak trading period, but said it saw recent revenue growth.
The London-based seller of clothing and accessories said revenue in the 14 weeks to July 29 was up 3.4% on a year before, but down 28% on pre-pandemic levels. This was led by a stronger in-store performance, with stores revenue up 20% year-on-year and e-commerce down 13%.
Online sales were ‘impacted by challenges following the launch of the new e-commerce platform alongside consumers returning to shop in stores,’ the company explained.
Looking ahead, Ted Baker said it expects to see a drag on traffic and conversion rates until the e-commerce platform issues are resolved.
‘Work continues at pace to ensure that the system is fully functional and optimised ahead of peak trading, although risk remains that certain milestones may not be met in this period,’ it warned.
Further, the retailer is ‘mindful’ of the weaker economic backdrop, falling consumer confidence and supply chain challenges as it heads into the event-led peak trading season.
Ted Baker gave the update ahead of a shareholder meeting later this month to vote on its £211 million takeover by Reebok-owner Authentic Brands Group. The Ted Baker board unanimously recommends shareholders back the deal.
The firm expects the takeover to be completed during the fourth quarter of 2022.
Shares were up 0.4% at 109.40 pence each on Friday morning in London, giving it a market capitalisation of £202 million.
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