A strong online performance helped British fashion brand Ted Baker PLC (LON:TED) to drive sales growth over the key Christmas trading period.
Retail sales for the eight week period to 7 January were up almost 18% (10.6% on a constant currency basis) compared to the same period last year.
That growth was mainly driven by a sharp increase in e-commerce sales, which were up 35% (31% constant currency) year-on-year.
The solid Christmas sales performance backs up a strong first half for the company, with it reporting earlier in the year that revenues were up 14.4% year-on-year during the six months to 13 August.
As well as increased sales, Ted saw its average retail square footage rise by 8.5% over the two months to 386,252 sq. ft., with particular expansion in China, Bahrain and Indonesia.
“Ted Baker has continued to perform well over the Christmas period against a tough trading backdrop,” said chief executive Ray Kelvin.
City broker Cantor Fitzgerald also noted the trading headwinds, adding that the numbers were “encouragingly better” than what it had expected.
“The stock has ‘treaded water’ over the last two years and now looks more reasonable value,” said Cantor.
Fellow broker Panmure Gordon wasn’t so bullish despite conceding that sales for the period were “marginally ahead” of its expectations.
“We…still believe that the company will struggle to generate a double-digit rate of growth once the FX tailwinds begin to revert or annualise,” said Panmure analyst Michael Stewart.
Shares were up 3.5% to 2,740p in early deals on Wednesday.