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Ted Baker registers strong growth in licence income
02 Oct '08
4 min read
Capital expenditure increased by £3.8m compared to last year due to new store openings and refurbishments. Higher dividends paid of £0.5m resulted in a net cash outflow before share buy-backs of £12.3m (2007: £11.4m). Including the cost of share buy-backs, the net cash outflow in the period was £14.3m (2007: £16.4m).
RETAIL
The retail division delivered a strong performance with sales growth up 17.5% to £53.3m (2007: £45.4m). The retail gross margin was 64.6% (2007: 64.9%) with an underlying margin slightly ahead of last year, diluted by the effect of three outlet stores that were not open in the comparable period.
Average retail square footage rose by 15% to 175,090 sq.ft (2007:152,249 sq.ft) as we expanded our retail space in the UK and sales per square foot increased by 1.7% to £299 (2007: £294).
WHOLESALE
As anticipated, wholesale sales were 12.1% below last year at £18.3m (2007: £20.8m). We estimate that around half of this decline arose from the actions we have taken in respect of those customers who are no longer appropriate for our brand.
The business was also affected by the transfer of some wholesale accounts to retail concessions. The underlying wholesale business continued to perform satisfactorily despite challenging market conditions.
Wholesale gross margins were higher at 41.5% (2007: 38.4%) as a result of an improvement in the underlying margin and changes in the product mix.
LICENCE INCOME
Ted Baker operates two types of licences: territorial licences covering North America, the Middle East, Asia, Australia and New Zealand; and product licences covering perfume & fragrance, watches, footwear, eyewear, childrenswear and lingerie.
Licence income for the period was up 26.1% to £2.9m (2007: £2.3m) and included a full period of contribution from our licensed childrenswear collection exclusive to Debenhams. We are pleased with the performance from our product licences and our territorial licences continue to perform in line with our expectations.
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RETAIL
The retail division delivered a strong performance with sales growth up 17.5% to £53.3m (2007: £45.4m). The retail gross margin was 64.6% (2007: 64.9%) with an underlying margin slightly ahead of last year, diluted by the effect of three outlet stores that were not open in the comparable period.
Average retail square footage rose by 15% to 175,090 sq.ft (2007:152,249 sq.ft) as we expanded our retail space in the UK and sales per square foot increased by 1.7% to £299 (2007: £294).
WHOLESALE
As anticipated, wholesale sales were 12.1% below last year at £18.3m (2007: £20.8m). We estimate that around half of this decline arose from the actions we have taken in respect of those customers who are no longer appropriate for our brand.
The business was also affected by the transfer of some wholesale accounts to retail concessions. The underlying wholesale business continued to perform satisfactorily despite challenging market conditions.
Wholesale gross margins were higher at 41.5% (2007: 38.4%) as a result of an improvement in the underlying margin and changes in the product mix.
LICENCE INCOME
Ted Baker operates two types of licences: territorial licences covering North America, the Middle East, Asia, Australia and New Zealand; and product licences covering perfume & fragrance, watches, footwear, eyewear, childrenswear and lingerie.
Licence income for the period was up 26.1% to £2.9m (2007: £2.3m) and included a full period of contribution from our licensed childrenswear collection exclusive to Debenhams. We are pleased with the performance from our product licences and our territorial licences continue to perform in line with our expectations.
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Ted Baker PLC
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