SLIDE 1
1 28 weeks ended 13 August 2016
FI N A N CI A L H I G H L I G HT S 13 Aug 15 Aug 2016 2015 Var - - PDF document
FI N A N CI A L H I G H L I G HT S 13 Aug 15 Aug 2016 2015 Var - - PDF document
TED BAKER PLC Half Year Results Presentation FI N A N CI A L H I G H L I G HT S 13 Aug 15 Aug 2016 2015 Var m m % Group sales revenue 259.5 226.8 14.4 21.5 17.8 20.5 Profjt before tax Basic EPS 37.1p 29.8p 24.5 14.8p
SLIDE 2
SLIDE 3
2 28 weeks ended 13 August 2016
TED BAKER PLC Half Year Results Presentation
RE V E N U E B Y CH A N NEL
– Retail sales up 13.6% (9.6% in constant currency) on a 9.7% increase in average square footage – Wholesale sales up 16.7% (13.7% in constant currency) refmecting a good performance from our UK business, and a strong performance from our North American business – Licence income from our territorial and product licences increased by 23.2% to £7.9m
AW16 ME N S WE AR ...
13 Aug 2016 £m 15 Aug 2015 £m Var % Constant Currency Var % Retail
191.1 168.2 13.6 9.6
Wholesale
68.4 58.6 16.7 13.7
Sales Revenue
259.5 226.8 14.4 10.7
Licence income
7.9 6.4 23.2
- Total Revenue
267.4 233.2 14.7
SLIDE 4
3 28 weeks ended 13 August 2016
TED BAKER PLC Half Year Results Presentation
RE V E N U E B Y COL L E CTION
– Menswear delivered a good performance with sales up 15.3%, representing 42.6%
- f total sales
– Womenswear performed well with sales up 13.8%, representing 57.4% of total sales
AW16 WOME N SWE AR ...
13 Aug 2016 £m % of sales 15 Aug 2015 £m % of sales Var % Menswear
110.6 42.6 95.9 42.3 15.3
Womenswear
148.9 57.4 130.9 57.7 13.8
Sales Revenue
259.5 100.0 226.8 100.0 14.4
SLIDE 5
TED BAKER PLC Half Year Results Presentation
RE V E N U E B Y TE RRI TORY
UK & EUROPE 13 Aug 2016 £m 15 Aug 2015 £m Var % Constant Currency Var % Retail
131.2 120.9 8.5% 6.7%
Wholesale
46.6 43.9 6.2% 6.2%
Sales Revenue
177.8 164.8 7.9% 6.6%
NORTH AMERICA Retail
51.1 39.7 28.7% 18.8%
Wholesale
21.8 14.6 49.3% 36.6%
Sales Revenue
72.9 54.3 34.3% 23.6%
ASIA Retail
8.8 7.6 15.8% 6.5%
Wholesale
- 0.1
- Sales Revenue
8.8 7.7 14.3% 6.0%
GROUP UK & Europe
177.8 164.8 7.9% 6.6%
North America
72.9 54.3 34.3% 23.6%
Asia
8.8 7.7 14.3% 6.0%
Sales Revenue
259.5 226.8 14.4% 10.7%
– In the UK & Europe, total sales increased by 7.9%, due to growth in both retail and wholesale with an increase of 8.5% and 6.2% repectively. Increased sales to trustees, including our export business, drove the wholesale sales growth – In North America, total sales increased by 34.3% with retail sales up 28.7% and sales from our US wholesale business up 49.3% refmecting increased brand awareness – In Asia, total sales increased by 14.3% with retail sales up 15.8% to £8.8m
4 28 weeks ended 13 August 2016
SLIDE 6
TED BAKER PLC Half Year Results Presentation
RE TAI L RE V E N U E
UK & EUROPE 13 Aug 2016 £m 15 Aug 2015 £m Var % Constant Currency Var % Stores
105.9 100.9 5.0% 3.0%
E-commerce
25.3 20.0 26.5% 25.8%
Retail revenue
131.2 120.9 8.5% 6.7%
Sales per sq ft
432 432
- (2.0%)
Average sq ft
245,377 233,435 5.1%
ASIA 13 Aug 2016 £m 15 Aug 2015 £m Var % Constant Currency Var % Stores
8.8 7.6 15.8% 6.5%
E-commerce
- Retail revenue
8.8 7.6 15.8% 6.5%
Sales per sq ft
310 306 1.3% (6.4%)
Average sq ft
28,372 24,953 13.7%
NORTH AMERICA Stores
46.7 36.8 26.9% 16.9%
E-commerce
4.4 2.9 51.7% 43.7%
Retail revenue
51.1 39.7 28.7% 18.8%
Sales per sq ft
434 412 5.3% (2.9%)
Average sq ft
107,692 89,405 20.5%
GROUP Stores
161.4 145.3 11.1% 6.7%
E-commerce
29.7 22.9 29.7% 28.0%
Retail revenue
191.1 168.2 13.6% 9.6%
Sales per sq ft
423 418 1.2% (2.7%)
Average sq ft
381,441 347,793 9.7%
5
– In the UK & Europe, retail sales increased despite the tough trading conditions and recent events in northern Europe – In North America, retail sales growth was driven by continued expansion despite increased levels of promotional activity in the wider market and a fall in tourism – In Asia, retail sales increased due to further expansion, however this remains a challenging trading environment
28 weeks ended 13 August 2016
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TED BAKER PLC Half Year Results Presentation
G ROU P MA RG I N B Y CHANNEL
– Retail gross margin increased to 65.6% due to an increase in our full price sell through – Wholesale gross margin increased to 40.1% due to a greater proportion of sales to our trustees, which carry a higher margin – Composite gross margin increased to 58.9% Retail Gross Margin Wholesale Gross Margin Composite Gross Margin 13 Aug 2016 % 15 Aug 2015 % Var % points Retail
65.6 64.0 1.6
Wholesale
40.1 39.2 0.9
Composite
58.9 57.6 1.3
10-Aug-13 Gross margin %
70 60 55 50 45 40 35
13-Aug-16 11-Aug-12 9-Aug-14 15-Aug-15
65
28 weeks ended 13 August 2016
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7
TED BAKER PLC Half Year Results Presentation
G ROU P I N CO ME S TATEM ENT
13 Aug 2016 £m 15 Aug 2015 £m Var % Revenue
259.5 226.8 14.4
Gross profjt
152.8 130.6 17.0
Gross margin
58.9% 57.6% 130bps
Operating expenses
(139.3) (118.3) (17.8)
Licence income
7.9 6.4 23.2
Other operating income/(expense)
0.1 0.1 50.1
Operating profjt before exceptionals
21.5 18.8 14.4
% Revenue
8.3% 8.3%
- Net fjnance expense
(0.3) (1.3) 76.7
Share of joint venture profjt
0.3 0.3 (19.2)
Profjt before tax
21.5 17.8 20.5 NEW YORK MANHATTAN:COLUMBUS CIRCLE
28 weeks ended 13 August 2016
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8
TED BAKER PLC Half Year Results Presentation
OP E RATI N G E X P E N SES
AW16 MI S S I ON I MPE CCAB L E
13 Aug 2016 £m 15 Aug 2015 £m Var % Distribution costs*
(68.1) (54.6) 24.7
Administrative costs*
(14.8) (14.8)
- Depreciation
(10.6) (7.8) 36.0
Payroll
(45.8) (39.7) 15.4
Performance related bonus
- (1.4)
(100.0)
Total operating expenses
(139.3) (118.3) 17.8
Operating exp as a % of sales
53.7% 52.2% 150bps
* Distribution and administrative costs exclude depreciation, payroll, bonus and exceptional costs.
– Distribution costs increased in line with expectations by 24.7% and as a percentage
- f sales were 26.2% (2015: 24.1%)
– Administrative costs were level on last year. The rental saving from the freehold acquisition
- f the UBB was offset by higher costs in
- ur central operations to support our
continued growth – Payroll costs increased by 15.4% refmecting investment in the UK and overseas teams to support this growth – Performance related bonus of £0.0m (2015: £1.4m) – Dual running costs of £2.0m were incurred in respect of our new distribution centre and the systems roll-out
28 weeks ended 13 August 2016
SLIDE 10
9
TED BAKER PLC Half Year Results Presentation
G RO U P CAS H FL O W
13 Aug 2016 £m 15 Aug 2015 £m Var £m Cash generated from operations*
34.1 27.9 6.2
Working capital movement
(20.5) (22.6) 2.1
Interest paid
(1.4) (0.6) (0.8)
Income taxes paid
(8.7) (9.0) 0.3
Total
3.5 (4.3) 7.8
Capital expenditure
(21.5) (17.9) (3.6)
Dividends paid
(15.2) (12.7) (2.5)
Other
0.3 0.3
- Net decrease in cash
(32.9) (34.7) 1.8
Exchange rate movement
1.3 (0.9) 2.2
Opening net cash
(24.6) (18.8) (5.8)
Closing net cash
(56.2) (54.4) (1.8)
* Excluding working capital movement, interest paid and income taxes paid.
– Decrease in working capital movement is mainly driven by exchange rates used in the translation of overseas subsidiaries – Increase in interest paid is largely due to the term loan used to fjnance the acquistion of the freehold of the UBB in January 2016 – Capital expenditure comprises the costs
- f opening and refurbishing stores and
- concessions. It also refmects the initial
phases of the fjt-out of our new European distribution centre as well as the on-going investment in business-wide systems to support our continued growth
28 weeks ended 13 August 2016
SLIDE 11
10
TED BAKER PLC Half Year Results Presentation
G RO U P B A L AN CE S H EET
13 Aug 2016 £m 15 Aug 2015 £m Var £m ASSETS Intangible assets
20.7 15.4 5.3
Property, plant & equipment
134.9 58.2 76.7
Inventories
135.6 115.0 20.6
Trade & other receivables
56.4 43.9 12.5
Cash & equivalents
25.5 14.4 11.1
Other assets
21.1 10.8 10.3
Total assets
394.2 257.7 136.5
LIABILITIES Trade & other payables
(59.5) (44.6) (14.9)
Income tax payable
(5.7) (2.0) (3.7)
Overdraft
(81.7) (68.8) (12.9)
Term loan
(60.0)
- (60.0)
Other liabilities
(1.4) (1.2) (0.2)
Total liabilities
(208.3) (116.6) (91.7)
Net assets
185.9 141.1 44.8 CAN AD A: CAL GARY-CHI N OOK
28 weeks ended 13 August 2016
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11
TED BAKER PLC Half Year Results Presentation
CAP I TAL E X P E N DI TUR E
CAPITAL EXPENDITURE BY REGION 13 Aug 2016 £m 15 Aug 2015 £m Var £m UK & Europe
2.8 3.7 (0.9)
North America
8.5 4.8 3.7
Asia
0.9 0.7 0.2
Central
9.3 8.5 0.8
Total
21.5 17.7 3.8
– UK and Europe expenditure includes new concessions in the UK, France, Germany and Spain, and committed spend for a new
- utlet in Spain, extensions to two outlets in
the UK and Belgium and further concessions expected to open before the end of the year – Expenditure in the US and Canada includes three new stores and one outlet, the relocation
- f one store, and committed spend for four new
stores expected to open before the end of the year – Asia expenditure includes one new store and two concessions, and committed spend for a new store and four new concessions expected to open before the end of the year – Central expenditure includes continued investment in our new ERP system which is being deployed globally across the business to support our long-term growth, and the initial investment in our new European distribution facility in the UK
S OUT H AFR I CA: S AN D T ON CI T Y
28 weeks ended 13 August 2016
SLIDE 13
12
TED BAKER PLC Half Year Results Presentation
W O R L DW I DE B RA N D S A L E S ( EST IM AT ED )
– Estimated worldwide brand sales are calculated by converting wholesale sales and licence income to their equivalent retail value – Estimated worldwide brand sales were £570.8m of which 43.6% came from
- verseas sales (compared with 40.4%
- f Ted Baker sales)
– The Ted Baker brand and collections continue to travel well and expand internationally 13 Aug 2016 £m % of Total 15 Aug 2015 £m % of Total 30 Jan 2016 £m % of Total UK
322.0 56.4 298.7 60.1 613.9 61.1
Overseas
248.8 43.6 198.1 39.9 390.3 38.9
Estimated Brand Sales
570.8 100.0 496.8 100.0 1,004.2 100.0
TED BAKER SALES 13 Aug 2016 £m % of Total 15 Aug 2015 £m % of Total 30 Jan 2016 £m % of Total UK
154.6 59.6 145.9 64.3 291.8 64.0
Overseas
104.9 40.4 80.9 35.7 164.4 36.0
Sales Revenue
259.5 100.0 226.8 100.0 456.2 100.0
28 weeks ended 13 August 2016
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13
TED BAKER PLC Half Year Results Presentation
L I CE N S I N G
MON D O T T I C A E Y E W E A R
– Licence Income was up 23.2% to £7.9m (2015: £6.4m), with both territorial and product licences performing well. We saw good performances from our product licensees, in particular childrenswear, eyewear, footwear and suiting – We have opened our fjrst store in Vietnam with our new licence partner Maison, and our fjrst store in South Africa with
- ur new licence partner Stuttafords, with
an additional opening planned in the second half of 2016
28 weeks ended 13 August 2016
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14
TED BAKER PLC Half Year Results Presentation
E -COMME RCE
– The performance of our e-commerce business was strong, with sales increasing by 29.7% to £29.7m (2015: £22.9m) – E-commerce is now 15.5% of the retail business (2015: 13.6%) – Growth has been aided by continued strong performance in the UK and Europe, North America and Australia and the launch of our website in Germany offering a translated site and localised payments – Continued investment in creative video, editorials and new product and category pages have improved customer engagement and increased conversion – Additional growth is planned with the introduction of a CRM tool, supported by the recent AX ERP implementation which will enable development of our brand commerce ambitions
28 weeks ended 13 August 2016
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15
TED BAKER PLC Half Year Results Presentation
TE D’S DI G I TA L O FFE RING
– Increased sophistication across all projects to enhance the connection between online and offmine – Deeper partnerships with Google, YouTube, Facebook and Instagram have meant the creation of much more channel and project appropriate content – Ted’s teams continue to develop a future facing approach to all new technologies and software – Recent campaigns included #SixStarStyle that showcased richer moving image fjlm, supported with clever social media campaign activations and digital press outreach – The launch of Mission Impeccable has seen Ted raise the bar again for how a season can be broken down more richly across all territories, business channels and digital platforms
28 weeks ended 13 August 2016
SLIDE 17
TED BAKER PLC Half Year Results Presentation
OU TL OOK
16
AW 1 6 MI S S I O N I M P E C C A B L E
– Positive reaction to AW16 collections – On-going external factors mean trading conditions remain challenging – Further store and concession openings planned – Average retail space to increase by c. 9%
- n last year
– Low double digit growth (in constant currency) anticipated in wholesale sales – New licence stores planned and continued development of product licences to drive licence income
28 weeks ended 13 August 2016
SLIDE 18
17
TED BAKER PLC Half Year Results Presentation
ST ORE DE TA I L B E H I N D TH E OUT LOOK
STORES & CONCESSIONS PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 25 Jan 2014 UK
192 186 185 183 181
Europe
96 94 90 80 68
North America
98 94 90 74 63
Asia
26 21 19 16 15
Partner Stores*
82 75 64 45 35
Total
494 470 448 398 362
GROUP PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 25 Jan 2014 Own Stores
77 74 71 64 58
Concessions
307 294 287 269 252
Outlets
28 27 26 20 17
Partner Stores*
82 75 64 45 35
Total
494 470 448 398 362
Closing sq. ft.**
398,850 387,086 377,830 344,898 316,648
Average sq. ft.**
388,742 381,441 357,096 332,089 303,951
*Partner stores include stores operated by our Australian joint venture partner. **Square foot excludes partner stores.
CAN AD A: OT TAWA
28 weeks ended 13 August 2016
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TED BAKER PLC Half Year Results Presentation
ST O R E D E TAI L B E H I N D TH E O U TL OOK CONT INUED
AW16 MI S S I ON I MPE CCAB L E
UK – 6 Concessions – 1 Relocation: Ashford Outlet EUROPE France – 1 Store Closure: Paris St. Germain – 1 Concession Germany – 2 Concessions Ireland – 2 Concession Closures Spain – 1 Concession – 1 Outlet: Las Rozas NORTH AMERICA USA – 3 Stores: Wooster Soho, Lennox Atlanta, Miami Brickell Canada – 1 Store: Calgary Chinook Mexico – 2 Licensee Concessions MIDDLE EAST & AFRICA – 3 Licensee Stores: Bahrain City Centre, Saudi Faisaliah Mall, Cape Town V&A Centre – 1 Licensee Outlet: Dubai Merass Outlet Village ASIA & AUSTRALASIA China – 3 Concessions Hong Kong – 1 Store: Pacifjc Place W Indonesia – 1 Store: Indonesia Plaza Japan – 2 Concessions – 1 Store Closure: Tokyo Omotesando
28 weeks ended 13 August 2016
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SLIDE 21
TED BAKER PLC Half Year Results Presentation
(A P P E N D I X 1) S TO RE & CON CE S S IONS PORT FOLIO
UK PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 Own stores
33 33 33 33
Concessions
150 144 143 141
Outlets
9 9 9 9
Total
192 186 185 183
Closing sq. ft.**
189,620 186,710 185,212 183,581
Average sq. ft.**
187,626 186,153 183,583 182,574
EUROPE PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 Own stores
4 5 5 4
Concessions
87 85 81 73
Outlets
5 4 4 3
Partner stores*
3 3 3 3
Total
99 97 93 83
Closing sq. ft.**
63,185 60,378 58,795 49,806
Average sq. ft.**
60,341 59,224 53,102 46,010
ASIA, MIDDLE EAST, AFRICA & AUSTRALASIA PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 Own stores
8 8 8 7
Concessions
15 10 8 7
Outlets
3 3 3 2
Partner stores*
65 60 54 41
Total
91 81 73 57
Closing sq. ft.**
27,823 27,681 27,352 22,271
Average sq. ft.**
28,681 28,372 25,915 21,145
NORTH AMERICA PROJECTION
28 Jan 2017
13 Aug 2016 30 Jan 2016 31Jan 2015 Own stores
32 28 25 20
Concessions
55 55 55 48
Outlets
11 11 10 6
Partner stores*
14 12 7 1
Total
112 106 97 75
Closing sq. ft.**
118,222 112,317 106,471 89,240
Average sq. ft.**
112,094 107,692 94,496 82,360
*Partner stores include stores operated by our Australian joint venture partner. **Square foot excludes partner stores. 20 28 weeks ended 13 August 2016
SLIDE 22
21
TED BAKER PLC Half Year Results Presentation
( A P P E N DI X 2) B RA N D S T R AT EGY
CONSIDERED DEVELOPMENT OF OUR COLLECTIONS – Continued review of our collections – Collections are being well received internationally PRODUCT LICENCES – Audio – Bedding – Childrenswear – Crockery – Eyewear – Footwear – Fragrance & Skinwear – Gifting & Stationery – Jewellery – Lingerie & Sleepwear – Luggage – Neckwear – Rugs – Suiting – Technical Accessories – Tiles – Watches CONTROLLED DISTRIBUTION THROUGH THREE MAIN CHANNELS – Retail – Wholesale – Licensing TERRITORIAL LICENCES – Alfa Egypt - Egypt – RSH Middle East - UAE, Saudi Arabia & Qatar – RSH Far East - Singapore, Malaysia, Indonesia & Thailand – Yun San - Taiwan – Flair Pty Ltd - Australia & New Zealand – Al-Mutawa and Al-Khatib Retail Company - Kuwait & Lebanon – Dabsan - Panama – Demsa - Turkey – Zeta - Azerbaijan – Multimoda - Mexico – Stuttafords - South Africa – Maison - Vietnam
AW16 MI S S I ON I MPE CCAB L E
28 weeks ended 13 August 2016
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TED BAKER PLC Half Year Results Presentation
N O TE S
28 weeks ended 13 August 2016
SLIDE 24