Ted Baker seeks to propel growth in Japan with license deal

Updated 28 August 2019

Ted Baker seeks to propel growth in Japan with license deal

TOKYO: UK’s Ted Baker said on Wednesday it tapped Sojitz Infinity Inc, a unit of Sojitz Corporation, as its Japanese retail license partner to help push the fashion retailer’s long-term growth plan in Japan.

Ted Baker has 560 stores and concessions worldwide with five shops in Japan and Infinity aims to build on the group’s store portfolio, expand the concession network and invest in Ted Baker’s online presence.

Ted Baker, which flagged an “extremely difficult” start to 2019 in June, expects the partnership to add to its pretax profit in the current financial year.

Known for selling suits, shirts and dresses with quirky details and bright, block prints, Ted Baker reported its first drop in annual profit since 2008 in March as brick-and-mortar clothing chains suffered due to online competitors and as consumers reined in spending.

The partnership in Japan is one of the first expansion moves by Chief Executive Officer Lindsay Page, who was promoted to permanent boss in April as the high street retailer sought to move on from misconduct allegations against its founder and former top boss Ray Kelvin.

“It (the partnership) brings in a very credible, well established partner that can deliver long-term growth by building on the investment TED has already made to introduce the brand to Japanese customers,” said Liberum analysts, calling the deal sensible.

Ted Baker said it will move some existing Japanese assets to Infinity at no value, with exceptional deal related costs of about £4 million ($4.91 million).

“Following our recently announced Joint Venture in China, including the Hong Kong S.A.R. and Macau S.A.R. territories, this completes the reorganization of our Asian operations,” Ted Baker Chief Executive Officer Lindsay Page said.

The partnership, which is initially for five years, will begin in October, giving Ted Baker 17 retail license partners across the globe.


Cathay Pacific lowers full-year profit expectations

Updated 1 min 29 sec ago

Cathay Pacific lowers full-year profit expectations

  • The airline reported a 7.1 percent drop in passenger numbers for the month of September
  • Travelers have avoided Hong Kong due to widespread anti-government protests
SINGAPORE: Hong Kong’s Cathay Pacific Airways on Friday lowered its expectations for full-year profit as a result of “incredibly challenging” conditions in its home market that were expected to persist for the rest of 2019.
The airline reported a 7.1 percent drop in passenger numbers for the month of September as travelers avoided Hong Kong due to widespread anti-government protests and said its second-half financial results were expected to be below the first half.
Cathay in August reported a HK$1.347 billion ($171.75 million) first-half profit. At that time, it said second-half profits were expected to be higher than the first-half, as is typically the case for the airline, based on seasonality.