UK-based lifestyle brand Ted Baker has reported a 50% growth in revenue for the 16 weeks from 25 April to 14 August.
During the quarter, the company’s retail sales increased by 30% compared to a year prior, but fell by 30% against the corresponding period two years earlier.
Ted Baker said that its sales were in line with expectations as consumer confidence showed signs of recovery.
The company’s store sales were up by 142% compared to a year earlier, while its digital sales dropped by 25% and represented 39% of its total retail sales.
The brand’s trading margin rose by more than 500bps from a year earlier and 190bp from two years prior.
Ted Baker chief executive Rachel Osborne said: “We have made encouraging progress, with trading over the second quarter in line with expectations, albeit the speed of recovery is different across store locations and regions.
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“Full price sales mix has significantly improved across all our retail channels as we continue to re-establish our premium lifestyle brand positioning.
“Our transformation programme remains on track, and we have moved forward on the three key pillars of our plan in refreshing and re-energising the product and brand, prioritising digital and capital-light growth and through our cost savings programme.
“Combined with our robust balance sheet and strong cash management, we are well placed for the future.
“It is still early days in the recovery, but we are confident that Ted [Baker] is starting to emerge from Covid a stronger and more resilient business.”
In May, Ted Baker entered an agreement with its existing lending syndicate to extend its revolving credit facility.
The company’s existing credit facility of £108m ($153m), which is set to mature next September, and another restricted facility of £25m ($35m) maturing next January, was replaced by a £90m ($127) facility, which will reduce to £80m ($113m) from next January.