Ted Baker Plc £TED - A Valuation on 25th June 2021

An attractive brand with a strong history that has lost its way. Can they manage their enormous debts? And will the transformation plan right the ship?

Ted Baker is a luxury clothing company that designs and retails menswear, womenswear and accessories under their brand in the US, UK, Europe, Canada and South Africa. The company operates through three segments: retail (stores and online), wholesale, and licencing. The company has various collections, including global, formal, endurance, accessories, bedding, children’s wear, eyewear, footwear, fragrances, skin, gifts, stationery, jewellery, lingerie, sleepwear, luggage, neckwear, rugs, suits and watches.

As of 30 January 2021, the company had 45 stores, 205 concessions, 21 outlets, and ten partner stores.

The Company

Market Cap = £261.41M
Total Debt = £140.37M
Cash & Equivalents = £66.67M
Enterprise Value = £335.11M
Shares Outstanding = 184.61M
EV/Sales (LTM) = 1.0x

The company was founded by Ray Kelvin in Glasgow in 1988 and named after a self-styled alter ego he had developed. Shortly after, he opened stores in Manchester and Nottingham. In 1990, the company opened its first store in London…