British fashion retailer, Ted Baker, saw a 30 percent spike in Q2 sales with consumers returning to shopping in physical stores in search of a new wardrobe for socializing.
The company particularly benefitted from a spike in sales in North American and UK shopping malls, where growth in consumer confidence helped drive sales. Online sales, however, dropped by 25 percent as consumers returned back to shopping in physical stores. Ted Baker operates a footprint of 560 stores and concessions.
Overall sales for the company, including wholesale and licensing, were up 50 percent from a year before. The increase in sales is a welcome relief for the retailer, which was forced to cut hundreds of jobs and seek refinancing to sustain the impact of the pandemic.
However, the company still has a long way to go when it comes to regaining its stature and investors’ trust. Retail sales in Q2 were down by a third compared to pre-pandemic levels, Reuters reported. The company is now valued at $441.56 million, down from $1.8 billion in 2015.
“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,” Osborne said.
The company has also been planning to roll out a new eCommerce platform, the launch of which is now delayed to early next year due to technical difficulties and the proximity to this year’s holiday season.
Ted Baker’s shares climbed more than 8 percent on Monday in anticipation of the Q2 update on Tuesday. With a year-to-date rise of 45 percent, the company is looking to end 2021 with an annual gain after reporting losses for five years straight.