Ted Baker revenue rises despite challenging conditions

Retailer Ted Baker posted a 7.3% jump in revenue for the 13 week period from 13 August 2017 to 11 November on Thursday, despite challenging conditions across some of its global markets.

During the period, retail sales were up 4.6%, or 5.1% in constant currency, while e-commerce sales rose 30.5% and represented 19.2% of total retail sales. Wholesale sales for the period were up 14.2%, reflecting good performances from both the UK and North American businesses and Ted Baker said it now expects low double-digit wholesale sales growth for the full year.

Meanwhile, average retail square footage rose by 5.6% to 404,864 and the company opened a new store in Oxford and further concessions in premium department stores in Canada, Germany and the UK. It also opened an outlet in Chicago and relocated its Bicester outlet.

Founder and chief executive Ray Kelvin said: "The group's continued growth in the period, despite challenging trading conditions across some of our global markets, has again been underpinned by our business model and the unwavering focus on product quality and design that are central to everything we do.

“The reactions to our Autumn/Winter collections have been positive. Whilst the group's full year results will, as ever, be dependent on trading conditions over the important Christmas period, we remain confident of meeting our expectations for the full year and continuing to develop Ted Baker as a global lifestyle brand."

George Salmon, equity analyst at Hargreaves Lansdown, said: “A more difficult October may not be too damaging in itself, but it does mean the group is sauntering rather than sprinting towards the all-important Christmas period.

"However, we remain long-term fans of the Ted Baker business model. Its quirky designs offer something different, and its aspirational yet affordable garments fill an attractive niche in the market. The careful approach to expansion reduces the risk of over-saturation, and so far the roll-out has delivered a stream of steadily increasing dividends for investors, with the share price largely following suit.”

At 0945 GMT, the shares were up 0.3% to 2,570p.