Rock steady Ted reports 18 per cent rise in sales

Ted Baker's summer rangeTed Baker's summer range
Ted Baker's summer range
TED BAKER has notched up an 18 per cent rise in group sales after the fashion retailer’s spring and summer collections sold well in the UK and abroad.

The improvement in the 19-week period to June 7 was helped by a 9.5 per cent increase in trading space as the firm opened two new stores, at Heathrow’s Terminal 2, and in Glasgow - the city where founder and chief executive Ray Kelvin launched his first store in 1988.

Internationally, the group opened new stores in Philadelphia and California; concessions in France, Spain and Tokyo; and a joint venture outlet in Brisbane.

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The business now has more than 180 UK stores and another 60 across Europe, the US and the Middle East and Asia.

Mr Kelvin said: “The Ted Baker brand has continued to perform very well and we have delivered further progress across our global markets and distribution channels.

“We are pleased with the performance of our spring and summer collections both in the UK and internationally, which is testament to our skilled and passionate team.

“Commitment to quality, design and attention to detail underpins everything we do and we remain focussed on our strategy to further develop Ted Baker as a global lifestyle brand.”

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The firm, which sells classic garments with a quirky twist, said it performed well in established markets, as well as continued progress in newer markets.

The high street retailer added that its online business continued to grow, with sales rising 48.1 per cent over the period. Gross margins were in line with its expectations and last year.

Cantor Fitzgerald analyst Freddie George said: “The trading update was better than our expectations and indicates that the spring and summer ranges have been well received both in the UK and overseas.”

Mr George said Ted Baker should see strong momentum in its womenswear sales, which he said accounts for 56 per cent of the fashion group’s sales.

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The analyst added that the group also had “a significant opportunity” to keep growing its online sales.

Cantor upgraded its 2015 profits forecast to £45.5m from £43.5m, having seen the retailer post a figure of £38.9m in the year to January 26.

Charmaine Yap, analyst at Jefferies said: “We believe consistency should be rewarded.

“The recent share price weakness has inevitably reignited opportunistic interest in the group’s longer term potential.

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“A continuation of Ted’s current rate of outperformance would inevitably support further upgrades - given the softening comparable structure for the remainder of the year - but at this stage, we conservatively upgrade our forecasts for the year marginally to pre-tax profit of £47.5m, from £47m.”

Sanjay Vidyarthi, analyst at Liberum Capital, said: “Ted has delivered strong growth against tough comparatives, with continued momentum in established and new markets... Our preferred quality growth play.”

Ted Baker refurbished its store in Yorkshire at the end of last year to pay homage to the region’s textiles trade. It sources fabrics from a number of Yorkshire mills, including Clissold and Abraham Moon & Sons.

Ted Baker has managed to trade well throughout the downturn.