British fashion retailer Ted Baker (TED.L) revealed a 20% rise in annual group revenue to £428.2m ($539.8m) on Thursday, in line with market expectations.
The group also narrowed its losses, which came in at -£44.1m for the year to the end of January, compared to a £107.7m loss.
This was a 59% rise thanks to the lifting of COVID restrictions during the year, with a return to the workplace, as well as weddings and social gatherings.
“As this happens, our customer insight adds to our confidence that people will seek out Ted Baker's unique mix of occasionwear and formalwear, along with our new products, supporting our return to growth and profit,” it said.
In its trading update, which was postponed by a few hours after a delay in completion of the audit, it revealed that its brand remained strong in the UK and improved in the US and Germany.
Online sales delivered 44.3% of total revenue during the period.
Formalwear and suits picked up in the latter part of the year, while womenswear accessories and footwear performed well. Menswear underperformed, particularly outerwear, “where some of our styling did not resonate as well with our core customers as we had hoped.”
It also saw a positive response to its spring/summer 2022 collection, and the recent launch of its new digital platform.
Net cash was £3m at the year-end. Shares in the company were marginally higher on the day, creeping up just 0.1%.
"We continue to make good progress against our transformation plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker's growth as a global lifestyle brand,” Rachel Osborne, chief executive, said.
“That momentum has continued into the new year, supported by a steady return to the office and social events.
“While we remain mindful of what is a challenging macro environment, we are well positioned for growth.”
“The most urgent task for the new owner of Ted Baker is to revitalise the brand’s fading image. 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,” Alex Smith, global sector lead at Third Bridge, said.
“Supply chain problems and today’s cost of living crisis are here to stay for at least for the next 6-12 months.”
“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 casual clothes.”
Watch: Ted Baker enjoys surge as dressing up returns