Ted Baker’s full-year pre-tax loss widens due to COVID-19 restrictions
- Ted Baker reports £107.7 million of full-year loss before tax.
- The luxury clothing retailer's revenue slides 44% in fiscal 2021.
- Ted Baker plc refrains from declaring a dividend on Monday.
Ted Baker plc (LON: TED) said on Monday its pre-tax loss widened in fiscal 2021 as the Coronavirus pandemic weighed on sales. Revenue in the first quarter of 2022, it added, was still lagging due to the COVID-19 crisis.
Ted Baker tanked 3% on market open on Monday but gained about 5% later on. Including the price action, it is now trading at a per-share price of 173 pence per share. In comparison, it had started the year at a lower 105 pence per share.
Ted Baker reports £352 million of revenue
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Ted Baker reported £107.7 million of loss before tax for the year that concluded on 30th January. In fiscal 2020, it had posted a narrower £77.6 million of pre-tax loss. The lifestyle brand posted £352 million of full-year revenue that represents a 44% annualised decline attributed to the pandemic-related restrictions. In the prior quarter (Q4), the retailer had seen a 47% decline in revenue.
The luxury clothing group shored up its finances amidst the health emergency via a share sale and slashing its workforce by roughly 1,000 jobs. Ted Baker is committed to £31 million of annual savings for the next three years.
In separate news from the United Kingdom, Saga plc said on Monday its cash burn in the travel business remained at the lower end of guidance for February to May.
Ted Baker is committed to boosting its online business
According to the London-listed firm, it has earmarked £11 million to boost its online business that noted a 22% year over year growth in the recently concluded year. In the first quarter, however, eCommerce sales were up only 4.5%. Commenting on the financial update on Monday, analyst Sophie Lund-Yates of Hargreaves said:
“Ted Baker needs to find a way to sustainably improve its online business, or it won’t bode well for trading patterns in the post-pandemic, digital-centric world.”
The British firm refrained from declaring a dividend on Monday but expressed confidence that payments will resume and surplus cash will be returned to shareholders in the future. On a year over year basis, Ted Baker added, its revenue was still down by 20% in Q1 of fiscal 2022.
Ted Baker performed largely downbeat in the stock market last year with an annual decline of more than 65%. At the time of writing, the London-headquartered firm has a market cap of about £320 million.