E-commerce sales increased by 18.7% (17.7% in constant currency) and represented 25.7% of total retail sales (2018: 24.3%). Average retail square footage rose by 5.0% to 429,576 sq.ft (2018: 409,226 sq.ft).
Against a backdrop of increased promotional activity, gross margins remain in line with our expectations for the full year and we expect to end the year with a clean stock position. Accordingly, the Board anticipates that results for the 52 weeks ending 26 January 2019 will be in line with its expectations.
We intend to announce our Annual Results for the 52 weeks ending 26 January 2019 on 21 March 2019.
Commenting on trading, Lindsay Page, Acting Chief Executive Officer said:
“The Ted Baker brand has delivered a good performance across both our stores and e-commerce business, despite the continuing challenging external trading conditions across our markets. This result again reflects the strength of the brand and the quality of our collections.
I would like to take this opportunity to thank our teams for their outstanding enthusiasm, skill and commitment throughout this key period and our global partners for their continued support.”
Acquisition of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC
Further to our announcement on 10 September 2018 and as anticipated, we completed the acquisition of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC on 1 January 2019 for a consideration of £20.3m, subject to the finalisation of completion accounts. This is an exciting opportunity to drive further growth in our footwear business by leveraging our global footprint and well invested infrastructure. The acquisition is expected to enhance the earnings of Ted Baker in FY2019/20 and beyond.
Independent external investigation
The work of the independent external investigation conducted by Herbert Smith Freehills LLP in respect of the recent media reports and petition is progressing and a further update will be made in due course.