Ted Baker benefits from Christmas sales boost, share price bounces back
The fashion retailer recorded strong revenue growth over the festive period, much to the delight of investors, helping its share price soar after falling off a cliff in early December.
Ted Baker saw its retail revenues increase by 12.2% over the five weeks from December 2 2018 to January 5 2019, compared to the same period a year ago, with the fashion retailer benefitting from a much needed Christmas sales boost.
The company also saw e-commerce sales rise by 18.7%, accounting for a little over a quarter of total retail revenues, with the fashion retailer maintaining that it was ‘business as usual’ amid the brand facing an investigation over the conduct of its founder.
‘The Ted Baker brand has delivered a good performance across both our stores and e-commerce business, despite the continuing challenging external trading conditions across our markets,’ Acting CEO of Ted Baker Lindsay Page said. ‘This result again reflects the strength of the brand and the quality of our collections.’
‘I would like to take this opportunity to thank our teams for their outstanding enthusiasm, skill and commitment throughout this key period and our global partners for their continued support,’ she added.
Ted Baker share price soars
The fashion retailer had a troubling end to the year, after its then CEO and founder Ray Kelvin opted to take voluntary leave of absence following harassment allegations made by a former employee.
The news hit the company’s share price hard, with it falling more than 40%, falling as far as 14.20.
Since then, the share price has slowly improved, but on Wednesday the stock soared following its strong Christmas sales figures, rising more than 14.5% as of 1:45pm GMT.
No Ordinary Shoes deal completed
Continuing with the good news, Ted Baker also used its recent trading update to announce that its £20.3 million acquisition of No Ordinary Shoes from global brand management company Pentland is complete.
The deal sees fashion retailer obtain exclusivity to manufacture and distribute footwear under the Ted Baker brand, bringing its shoe licence back in-house.
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