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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Ted Baker sales grow but slow August worries

Total sales rose 24.5% year-on-year to £226.8mln in the six months to 15 August, while profits rose 14.6% to £17.8mln.

Fashion retailer Ted Baker (LON:TED) maintained its good recent sales growth with America especially strong.

Total sales rose 24.5% year-on-year to £226.8mln in the six months to 15 August, while profits rose 14.6% to £17.8mln.

US revenues grew 37% year-on-year to £39.7mln.

Keith Bowman at Hargreaves Lansdown said: “On the downside, accompanying outlook comments inject some caution.”

August’s sales were adversely impacted by a number of external factors, while full year trading remains dependent on the more important second half, Baker said.

Shares dropped 92p or 2.8% to 3,186p today, but broker Canaccord Genuity is still keen: “We remain long-term fans and advocates of this unique brand and its global growth potential.

“The foundations of this potential have been carefully and cautiously built by the longstanding team over many years.”

Ted Baker has 416 stores with just under half of them in the UK and around 80 both in Europe and the US.

It is noted for expanding at a slower pace than other clothing retailers such as Uniqlo or Zara.

“With plenty of new territory that they can expand into, growth is not so dependent on achieving same store sales gains,” Hargreaves Lansdown said.

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