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Ted Baker bucks high street trend with higher sales

Designer fashion house boosted revenue by 11.3% in the 19 weeks to June 11

Ted Baker model
Ted Baker boosted spring sales while rivals have faltered

Designer clothing retailer Ted Baker PLC (LON:TED) bucked the trend of lacklustre high street fashion demand by racking up higher sales.

Ted Baker boosted revenue by 11.3% in the 19 weeks to June 11, with retail sales up 12.7% against what it described as tough trading.

Retailers such as Next Plc (LON:NEXT) and Marks & Spencer PLC (LON:MKS) have reported lower sales, blaming a cold spring for a lack of demand for summer outfits.

But Ted Baker said e-commerce sales rose 32.3% and wholesale sales lifted 7.3%, boosted in particular by a strong North American performance.

It also launched a first language-specific website in Germany and said it was pleased with its initial performance.

The performance of the UK wholesale business took a hit from the timing of some deliveries, as previously indicated.

But the group said it continued to anticipate low double-digit growth in the wholesale business for the full year.

Founder and chief executive Ray Kelvin said: "These results demonstrate the strengths of the brand.

"We are very pleased with the response from our customers over this period and remain well-positioned to achieve our full-year expectations."

International expansion continued with successful store openings in Beijing, Ottawa and Seattle, and further concession launches in department stores in China, France, Germany, Japan and Spain.

Broker Liberum Capital, which has a 'buy' recommendation on Ted Baker, said in a note: "Ted is outperforming the peer group both in stores and on-line, we believe, as well as through the wholesale channel.

"Sales density including online rose 0.6%. This measure naturally lags like-for-like sales growth and we estimate Ted achieved about 3% like-for-like growth at constant currency in the period.

"The company remains on track to meet the full-year expectations of 12-15% profit growth. Maintain 'buy' and 3100p target price."

Shares in Ted Baker rose 38.75p, or 1.67%, to 2363.75p in opening London trades.

 

 

 

Quick facts: Ted Baker PLC

Price: 99.5 GBX

LSE:TED
Market: LSE
Market Cap: £183.66 m
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