Ted Baker (LON: TED), the global lifestyle brand, has today announced that on 15 August 2019, it entered into a new product licence agreement with Next Plc (LON: NXT) to accelerate the expansion of Ted Baker’s childrenswear collections. Under the agreement, which will run for an initial five-year period, Next will create and sell Ted Baker childrenswear products spanning baby, boys’ and girls’ clothing, shoes and accessories in collaboration with the creative team at Ted Baker. The new collections will launch in Spring 2020 and will be sold through Next’s retail channels and wholesale relationships as well as through Ted Baker’s websites.
The Company’s current childrenswear product relationship with Debenhams will end on 29 February 2020. The Company retains an established and mutually profitable relationship with Debenhams which remains a Licence Partner for lingerie and nightwear.
Ted Baker does not anticipate a material financial impact from this agreement in the current financial year nor in the 2020/21 financial year.
Commenting, Lindsay Page, Chief Executive Officer of Ted Baker, said:
“We are delighted to announce this exciting product licence with Next to support the continued expansion of Ted Baker’s growing childrenswear collections.
Product licensing is a proven and highly successful pillar of Ted Baker’s strategy to expand as a global lifestyle brand. It enables us to carefully develop the brand in new, relevant categories by leveraging the specialist product expertise of our carefully selected partners.
I would like to take this opportunity to thank Debenhams for their skill and hard work in establishing and developing the Ted Baker childrenswear business and we will continue to work with them in other product categories.
Our childrenswear collections – which are small in size but big in style – have already proven incredibly popular with Ted Baker customers. As a multi-channel retailer with global capabilities and wholesale experience, Next is the outstanding partner to take Ted Baker forward in this category, which we believe will deliver significant growth in the coming years.”
Commenting, Simon Wolfson, Chief Executive Officer of Next plc, said:
“We are thrilled to have the opportunity to help build and develop the Ted Baker children’s business across the globe. We have worked with Ted Baker for a number of years through Label and recognise the power of their brand.”