Ted Baker PLC said Thursday that trading for the fourth quarter of fiscal 2021 was hit hard by the coronavirus pandemic and warned of higher costs related to Brexit.
The U.K. lifestyle brand said year-on-year revenue fell 47% for the period, while retail sales for the 13 weeks ended Jan. 30 also fell 47% due to the closure of many stores and a material decline if footfall, adding that directly operated ecommerce sales rose 2%. Group ecommerce sales, on the other hand, fell 1% and represented a 63% of total retail sales for the year from 33% in fiscal 2020.
The London-listed company added that it has a strong balance sheet and cash position, which it notes leaves the company well placed for the future despite assuming negative effects across both channels from store closures until the end of May, followed by a phased recovery until the end of the first half.
"Following the trade agreement between the U.K. and EU signed in late December 2020, the group anticipates up to 5 million pounds of incremental costs associated with Brexit, reflecting extra duty and shipping costs partially offset by a new customs warehouse capability," it said.