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Ted Baker shares gain as it reports strong start to the year despite current "uncertain macro environment”.

Last updated: 09:00 13 Jun 2017 BST, First published: 07:57 13 Jun 2017 BST

Ted Baker fashion model
The firm said its e-commerce business continued to perform well with sales increasing by 35.9% - or 32.3% in constant currency

Ted Baker PLC (LON:TED) shares were in fashion this morning after the group reported a strong start to the year, with revenues up over 14% and the retailer said it is "positioned" to meet full year expectations “despite the current uncertain macro environment”.

In a trading update for the 19 weeks to 10 June 2017, the FTSE 250-listed group  saw its group revenue rise 14.2% year-on-year, while its total retail sales for the period increased by 14.3% - or 8.4% in constant currency – despite “external factors continuing to impact trading conditions across some of our global markets.”

READ: Ted Baker unveils full year profit and sales growth but highlights market challenges

The firm said its e-commerce business continued to perform well with sales increasing by 35.9% - or 32.3% in constant currency - reflecting continued growth across its sites.

The global expansion of the brand continued in the period with successful openings in Los Angeles, Paris, and Shanghai, the group’s first Dutch outlet in Roermond and further concession openings in premium department stores in France, Germany, Japan, South Korea, the Netherlands and the UK.

Firm grip retained on "quirky and fresh" image

George Salmon, equity analyst at Hargreaves Lansdown, said: “While it’s always tempting for retailers who have found a popular niche in the market to cash in by opening stores left, right and centre, Ted is more than aware of the dangers of smothering its customers with too much of a good thing.

“The group opens up a smattering of new stores in attractive new locations every year, and so retains a firm grip on its image, which remains quirky and fresh.

He added: “This has all translated into some lucrative results for shareholders. Over the last ten years, the group has averaged double-digit percentage increases in sales, profits and dividends.

“Although wider economic conditions may not be entirely favourable just now, we expect to see this impressive record continue for a few years yet.”

In early trading, Ted Baker shares were 2%, or 48p higher at 2,473p.

Wholesales sales increase

Ted Baker said its wholesale sales for the period increased by 13.8% - or 8.9% in constant currency- reflecting good performances from both its UK and North American businesses. 

It added that both retail and wholesale gross margins were in line with the group’s expectations.

Ray Kelvin, Ted Baker’s founder and chief executive said: "This continued good performance across all of our distribution channels is a reflection of the strength and appeal of Ted Baker as a global lifestyle brand.”

He added: “We are very pleased with the customer response during the period and, despite an uncertain macro environment, we remain positioned to deliver further progress and our expectations for the full year."

  -- Adds share price, broker comment --

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