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LONDON, United Kingdom - British fashion retailer Ted Baker's has performed better than expected, showing further signs of recovery under its new chief executive, sending its shares up as much as 16 percent.

The company was struggling before the coronavirus crisis, hit by a string of profit warnings, management changes and an accounting scandal since founder Ray Kelvin stepped down as chief executive last year after misconduct allegations, which he denies.

Ted Baker, known for its suits, shirts and dresses with quirky details, said online sales were significantly ahead of expectations and that increased social media engagement and targeted digital marketing had stimulated sales, in line with new Chief Executive Rachel Osborne's transformation plan.

"The scale of progress made under the new management team has been truly extraordinary," Liberum analysts said. "The delivery against very clear targets and more immediate milestones highlights a clear direction from the new management team."

As part of a turnaround, Ted Baker said previously announced job cuts are expected to save 12 million pounds ($15.2 million) in the current financial year and 27 million pounds on an annualised basis, while spending has been restricted to less than 10 million pounds for the 2021 financial year.

Online sales, which have climbed to 69 percent of total retail sales from 25 percent last year, jumped 35 percent for the 11 weeks to July 18, Ted Baker said.

The company's shares rose 16 percent on the news before paring gains. By 08.21 am GMT the shares were up 9.3 percent at 77.6 pence.

Ted Baker, which had reopened 95 percent of its stores by the end of last week, said group revenue for the 11-week period was down 55 percent year on year at £60.9 million pounds, beating a base-case scenario provided last month.

Ted Baker said it will continue to withhold forecasts for the financial year to January 30.
By Tanishaa Nadkar; editors: Shounak Dasgupta and David Goodman

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Ted Baker Reports Better Than Expected Sales Performance

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LONDON, United Kingdom - British fashion retailer Ted Baker's has performed better than expected, showing further signs of recovery under its new chief executive, sending its shares up as much as 16 percent.

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Ted Baker taps new customer, marketing and digital boss

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Ted Baker taps new customer, marketing and digital boss

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Ted Baker London | Designer Clothing & Accessories

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With a focus on quality, attention to detail and a quirky sense of humour, Ted Baker is the epitome of British style.

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The Ted Baker chief executive, Ray Kelvin, has resigned following allegations of inappropriate behaviour towards staff.

Kelvin, who started the company more than 30 years ago, took a voluntary leave of absence from his role in December after allegations of misconduct, including "forced hugs" and ear-kissing, were made against him.

The claims are being investigated by an internal independent committee, which commissioned the law firm Herbert Smith Freehills (HSF) to look into the allegations and the company's policies, procedures and handling of human resource-related complaints.

Kelvin, 64, who has denied all allegations of misconduct, agreed to resign with immediate effect from his positions as the chief executive and a director of Ted Baker, the firm said.

The acting chief executive, Lindsay Page, has agreed to continue in the role, and the board has asked David Bernstein, who has chaired the firm since 2003, to act as executive chairman. The latter will stay in this role until at least 30 November 2020, by which time a new chairman will be appointed.

Kelvin, who founded the chain in Glasgow in 1988 and owns a 35% stake in the business worth more than £300m, had been criticised by former and current staff for alleged harassment at its head office. More than 300 former and current staff signed a petition on the campaigning site Organise complaining about his behaviour.

Details of the petition were first reported by the Guardian and in a statement about Kelvin's resignation the campaigning group said: "After headline exposure in the Guardian, the campaign forced Ted Baker to launch a formal investigation into the allegations."

Kelvin said in a statement: "Difficult though this decision is, given that Ted Baker has been my life and soul for over 30 years, I've decided that the right thing to do is to step away from Tedand allow the business to focus on being the outstanding brand it is so it can face 2019 with fresh energy and renewed spirit."

As a shareholder, he said, he would support Page and be available to offer him and the team advice.

"I'm extremely proud of what we've achieved in building Ted Baker to the global brand it is today. Thank you to every single colleague, customer, supplier, and investor for your commitment to the business. We couldn't have done it without you and I'm so grateful."

He said the past few months had been deeply distressing and he would take time to consider his "next adventure".

Ted Baker said the rest of the investigation would focus on its policies, procedures and handling of complaints. It expects HSF to finish its investigation by early April, and the main findings of its report are due to be published next month.

Kelvin, who owns nearly 35% of the fashion chain, will not receive any salary or benefits from Ted Baker following his resignation on Monday, and his 2016, 2017 and 2018 bonus share awards will lapse.

Bernstein said: "Ray Kelvin founded the business 32 years ago and has, together with the fantastic team around him, been the driving force behind it becoming the global brand it is today. As founder and chief executive, we are grateful for his tireless energy and vision. However, in light of the allegations made against him, Ray has decided that it is in the best interests of the company for him to resign so that the business can move forward under new leadership.

"As a board of directors, we are committed to ensuring that all employees feel respected and valued. We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted's culture are maintained, appropriate changes are made."

Sharon Baylay is to act as the designated non-executive director for engagement with the workforce. The former BBC Worldwide and Microsoft executive, who joined the Ted Baker board last summer, was appointed to lead the investigation in December.

Shares in the FTSE 250-listed company fell by almost 5% in early trading, following news of Kelvin's departure, but swiftly bounced back and were later up nearly 4% at 1973.5p. Last March they were changing hands at more than 3214p.

The retailer issued a profit warning last week after writing off £5m of unsold clothes.

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Ted Baker boss Ray Kelvin quits after 'forced hugging' claims

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The Ted Baker chief executive, Ray Kelvin, has resigned following allegations of inappropriate behaviour towards staff. Kelvin, who started the company more than 30 years ago, took a voluntary leave of absence from his role in December after allegations of misconduct, including "forced hugs" and ear-kissing, were made against him.

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Taxi for Kelvin. In December 2018, former employees launched an online petition on the workplace ... [+]
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Once a "darling of the UK high street" fashion retailer Ted Baker has announced a sales slump, whilst in the midst of a turnaround plan, after several challenging years of trading.

The brand, famous for stamping a quirky twist onto formal fashion, has experienced a sales fall of 44% over the past financial year - impacted by the lack of consumer demand for formal wear, in a year when weddings and functions have been postponed through on/off lockdowns.

The business argues that it is now better placed to navigate the continuing disruption, with CEO Rachel Osbourne stating there had been a "very pleasing" return to demand since stores reopened and the business is actioning a transformation plan which also includes a greater focus on online sales.

Several retailers such as John Lewis Partnership and Marks & Spencer have felt the pain of Covid-19 more significantly if they were in a challenging position at the start of the pandemic, and this is certainly the case for Ted Baker.

At the time, the business was trying to recover from some earlier scandals including the departure of CEO and founder Ray Kelvin - following misconduct allegations, Mr Kelvin left the business in March 2019.

In December 2018, former employees launched an online petition on the workplace networking website Organise, accusing him of inappropriate behaviour. More than 200 Ted Baker staff pledged to finally breaking their silence after at least "50 recorded incidents of harassment" at the fashion retailer.

Mr Kelvin took immediate leave and months afterwards announced that although the business was his "life and soul", having created the brand in 1988, that "the right thing to do is to step away from Ted".

But the challenges didn't stop there for the fashion retailer, which had been seen as a revolutionary brand in everything from store layout to designs that were loved internationally. There was also an accounting scandal to contend with.

Shares plummeted when the business announced in January 2020 that an accounting error it had highlighted a year earlier, was twice as big as initially thought, which meant there would be a £58 million deficit on its balance sheet.

Preliminary investigations demonstrated the business to had overestimated the value of stock held in January 2019 by between £20m and £25m. At the time in question, the company was audited by accountants KPMG.

After the appointment of accountants from Deloitte an investigation showed the real extent of the issue, with shares in the business falling nearly 10% on the release of the news.

And since then with the on/off lockdowns and stores being forced to close, alongside the huge shift in the type of fashion being purchased - the blues for Ted Baker haven't lifted.

Ted Baker reported a pre-tax loss of £107.7 million for the year to the end of January 2021, previously stating a £77.6 million loss in the 12 months prior.

But the challenges didn't stop there for the fashion retailer, which had been seen as a ... [+]
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CEO Rachel Osborne, ex Debenhams CFO, who joined in March 2020 to transform the beleaguered fashion brand said: "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.

"During the period, we delivered robust cashflow generation, fixed our balance sheet, refreshed our senior leadership team and today we are upgrading our financial targets for the second time since outlining our new strategy last summer.

The business is reported to have signed an extension to its credit facility recently to deliver on its transformation plan.

But like many of its rivals, the business has more to focus on than just finance, in a fashion world that has transformed remarkably over the last 12 months.

Sales of fashion have been focussed on relevant trends like athleisurewear, as consumers have lived a very different existence, and fashion e-tailers like ASOS and Boohoo who have both made acquisitions of traditional high street brands, seem to have grown from strength to strength - despite both suffering questionable issues around their ethical and environmental policies. Additionally with environmental issues on the mind of consumers more than ever before - alternative offers around clothes rental and swapping to resale sites show signs of positive engagement and growth.

Just like high street casualties Debenhams and Topshop, could Ted Baker find the transformation more challenging than the board room predicts when you factor in the changing consumer?

More challenger brands are entering the market, more fashion labels are moving into DTC, buy now, pay later options allows many consumers to reach into a higher tier of a fashion offer to luxury brands and Ted Baker designs are not seen as being as disruptive as they once were.

It seems at a time when the brand was firefighting issues on ethics and finance, some competitors were maximising the online revolution and putting the consumer firmly at the heart of their campaigns.

Whether this might be "too little, too late" for Ted Baker, without significant change, is still yet to be seen.

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Ted Baker Troubles: Fashion Retailer Hits £100 Million Loss Amid Turnaround Plan

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Once a "darling of the UK high street" fashion retailer Ted Baker has announced a sales slump, whilst in the midst of a turnaround plan, after several challenging years of trading.

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Ted Baker raises £105 million to ride out pandemic 

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Ted Baker raises £105 million to ride out pandemic 

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https://www.businessoffashion.com/articles/retail/ted-baker-raises-105-million-to-ride-out-pandemic/

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LONDON, United Kingdom - Ted Baker has raised £105 million ($131.78 million) in new equity, the loss-making fashion retailer said on Thursday, amid plans to reduce cost and shift toward online sales as it struggles to ride out the coronavirus crisis.

The company, known for its suits and dresses with quirky details, said in June that it planned to offer 126.7 million shares at 75 pence each, a 51.1 percent discount to its closing price on May 29.
By Yadarisa Shabong; editor: Anil D'Silva.

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Ted Baker Raises £105 Million To Ride Out Pandemic

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LONDON, United Kingdom - Ted Baker has raised £105 million ($131.78 million) in new equity, the loss-making fashion retailer said on Thursday, amid plans to reduce cost and shift toward online sales as it struggles to ride out the coronavirus crisis.

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Ted Baker reports better than expected sales Performance

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Ted Baker reports better than expected sales Performance

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LONDON, United Kingdom - British fashion retailer Ted Baker's has performed better than expected, showing further signs of recovery under its new chief executive, sending its shares up as much as 16 percent.

The company was struggling before the coronavirus crisis, hit by a string of profit warnings, management changes and an accounting scandal since founder Ray Kelvin stepped down as chief executive last year after misconduct allegations, which he denies.

Ted Baker, known for its suits, shirts and dresses with quirky details, said online sales were significantly ahead of expectations and that increased social media engagement and targeted digital marketing had stimulated sales, in line with new Chief Executive Rachel Osborne's transformation plan.

"The scale of progress made under the new management team has been truly extraordinary," Liberum analysts said. "The delivery against very clear targets and more immediate milestones highlights a clear direction from the new management team."

As part of a turnaround, Ted Baker said previously announced job cuts are expected to save 12 million pounds ($15.2 million) in the current financial year and 27 million pounds on an annualised basis, while spending has been restricted to less than 10 million pounds for the 2021 financial year.

Online sales, which have climbed to 69 percent of total retail sales from 25 percent last year, jumped 35 percent for the 11 weeks to July 18, Ted Baker said.

The company's shares rose 16 percent on the news before paring gains. By 08.21 am GMT the shares were up 9.3 percent at 77.6 pence.

Ted Baker, which had reopened 95 percent of its stores by the end of last week, said group revenue for the 11-week period was down 55 percent year on year at £60.9 million pounds, beating a base-case scenario provided last month.

Ted Baker said it will continue to withhold forecasts for the financial year to January 30.
By Tanishaa Nadkar; editors: Shounak Dasgupta and David Goodman

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Ted Baker Reports Better Than Expected Sales Performance

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LONDON, United Kingdom - British fashion retailer Ted Baker's has performed better than expected, showing further signs of recovery under its new chief executive, sending its shares up as much as 16 percent.

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Ted Baker sales up 50% after scaling back promotional activity

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Ted Baker sales up 50% after scaling back promotional activity

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Ted Baker grows revenues by 17.6% thanks to turnaround plan

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Ted Baker grows revenues by 17.6% thanks to turnaround plan

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Ted Baker enters into gaming as it reveals Autumn/Winter 2021 collection

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Ted Baker enters into gaming as it reveals Autumn/Winter 2021 collection

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Ted Baker to host digital Street Party sessions

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Ted Baker to host digital Street Party sessions