Ted Baker sales jump 35% on resilient demand in Omicron-hit quarter

Upmarket fashion retailer Ted Baker (LON:TED) reported higher fourth-quarter sales on Wednesday, as demand for clothing remained robust even in the face of pandemic-related curbs imposed in Britain during the reporting period.

Sales jumped 35% in the quarter ended Jan. 29, a period in which Britons were advised to work from home and use so-called vaccine passports at some venues. The measures, aimed at curbing the spread of the Omicron coronavirus variant, have since been lifted.

Ted Baker, like other apparel retailers, has seen demand bounce back from the peak of the pandemic as people returned to socialising and going to the office, but subdued tourism in city centres is still affecting in-store footfall.

The company’s retail sales — which comprise both in-store and online sales — were running at 10% below pre-pandemic levels before the Omicron warnings and fell to 42% below pre-COVID-19 levels during the latest surge in cases.

“We were particularly pleased with the performance of Womenswear, with bags, footwear and tops all selling well, and a strong initial reaction to the Spring/Summer 2022 collection,” Chief Executive Officer Rachel Osborne said.

The retailer, which has nearly 400 locations mostly in the United Kingdom, Europe and North America, is more than halfway through a three-year turnaround plan launched by Osborne, focusing on cost cuts and boosting its online presence and product range.

Ted Baker said on Wednesday the search for its new chairperson was on track.