Summer loving customers lift Ted Baker

Analysts lifted profit targets after the designer brand's latest update for the 19 weeks to June 12 indicated 10 per cent growth in like-for-like sales, much better than the low-to-mid single digits predicted in the City.

Panmure Gordon stockbrokers said it now expected profits of 23.5m in the year to January, up 4 per cent on its previous forecast. Ted Baker said trading in the UK continued to perform well, while it also maintained the recently improved trend in its overseas markets.

Founder and chief executive Ray Kelvin said: "Quality of service, design and creativity are at the heart of everything we do at Ted Baker.

"Whilst we are mindful of the uncertain macro economic environment, these strengths continue to drive our business forward and we have been pleased with the customer response to our spring summer collections."

The company has 33 stores in UK and Europe, plus 151 concessions and 10 outlet sites. It has stores in Leeds, Sheffield and York and concessions in Leeds, York, Hull, Sheffield and Huddersfield.

There are a further 16 shops in the Middle East and Asia and nine stores in the United States, a figure due to rise to 13 by the end of the year.

With the company's wholesale business growing sales by 8.2 per cent on a year earlier, Ted Baker's overall turnover growth was 18 per cent in the 19-week period. The 20.4 per cent rise in retail store sales included a 10 per cent increase in store space.

Singer Capital Markets analyst Matthew McEachran said: "There can be no doubt that the trading backdrop in the UK is likely to get tougher over the next 12 months.

"However, Ted's UK business is clearly in excellent shape, and the latest collections are being well received."