Ted Baker has seen its losses narrow to £44.1m for the 52 weeks ended 29 January 2022, up from a loss of £107.7m the previous year.
The improved performance comes as group revenues increased 20% to £428.2m, up from £355.3m, as the retailer said sales were “supported by a steady return to the office and social events”.
However, the group said it was still “mindful of consumer squeeze from inflation and cost of living pressures”.
Rachel Osborne, CEO, said: “We continue to make good progress against our Transformation Plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker’s growth as a global lifestyle brand.That momentum has continued into the new year, supported by a steady return to the office and social events.
“While we remain mindful of what is a challenging macro environment, we are well positioned for growth. The positive response to our SS22 collection and the recent launch of our new digital platform, supported by our strong brand, capital light strategy and well-established distribution channels give us confidence in Ted Baker’s future.”
The news comes after the group announced it has selected a preferred counterparty to buy the business as US Private equity firm, Sycamore, has officially backed out of acquiring the fashion retailer.
The company said it is moving forward into a process of confirmatory due diligence, which is likely to take several weeks.
However, Ted Baker said there can be no certainty that an offer will be made.
Ted Baker officially launched a formal sales process after receiving a number of unsolicited offers from US Private equity firm Sycamore Partners.
However, last month (March) the company rejected a number of bid approaches made by Sycamore. The first two of the approaches valued Ted Baker at 130p-a-share and 137.5p-a-share – equivalent to roughly £250m. However, the current market capitalisation by share price for Ted Baker is £277.49m.
On 27 April 2022, the retailer announced that it had received a number of non-binding proposals from potential buyers as Sycamore is no longer participating in the formal sale process.