Covid-19 restrictions curbed customer footfall and bag sizes, which has sent ripples through fashion brand Ted Baker over the last year as it invested in pandemic turnaround measures.
The brand swallowed a revenue loss of £278.5m in the year to 30 January, down 44 per cent as it bagged £352m in total.
Ted Baker also suffered a loss before tax of £107.7m, swelling from a loss of £77.6m the year before.
Shares lifted slightly in this morning’s trading, up 1.98 per cent, taking Ted Baker’s price to 169.7p per share.
“While the impact of COVID-19 is clear in our results and has amplified some of the legacy issues impacting the business, Ted Baker has responded proactively and is in a much stronger place than it was a year ago,” CEO Rachel Osborne said.
The brand’s turnaround measures have appeared to be slowing following its results, after Ted Baker refinanced by extending its revolving credit facility with lenders in May.
Ted Baker also bagged two decade-long territory licenses in March to expand its reach into the Middle East, North Africa and Indonesia.
Overall retail sales were down 42.2 per cent. But the brand’s e-commerce sales lifted 22 per cent to £144.9m, compared to £118.7m in the prior year, fuelled by the brand’s investment it said.
With more customers eyeing climate-conscious clothing, the brand has also bolstered its sustainable offerings.
“We have made good progress with our sustainability strategy, Fashioning a Better Future, including the mapping of all of our factory partners within our supply chain and significantly increasing our usage of cotton from sustainable sources to 69 per cent,” the CEO added.
The brand has suffered more than most, as it was already in “a tough spot before the crisis”, equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, explained.
“Covid holds a particularly painful sting for Ted Baker. Lockdowns are every retailer’s nightmare, but especially so for ones that rely more heavily on formal and occasionwear.
“While e-commerce revenue is positive, unlike the physical store-estate, this hasn’t come close to plugging the sales gap.
“Getting enough footfall through the doors is not going to be an easy task.”