Ted Baker PLC (LON:TED) has raised its interim dividend by 12% after delivering profit and revenue growth, boosted by store expansion and e-commerce sales.
The UK fashion brand reported a 12.7% increase in profit before tax and exceptional items to £24.2mln in the 28 weeks to 12 August compared to the same period a year ago.
Group revenue came to £295.7mln, up 14% on a reported basis or 9.5% in constant currency, despite a tough retail market in the UK and the US.
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UK retailers have taken a hit by weak consumer spending as a weaker pound drives up inflation while the US has experienced strong levels of promotional activity and lower international tourism.
“Whilst trading conditions in some of our markets remain challenging, we are confident of making further progress for the full year, in line with our expectations,” said founder and chief executive, Ray Kelvin.
Retail sales, including e-commerce, grew 13.9% or 9.2% in constant currency to £2.17.7mln with growth in the UK and Europe, North America and Asia.
In wholesale, sales edged up 14.1% or 10.2% in constant currency to £78.0mln, supported by a strong performance in the UK and North America.
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Licence income rose 23.1% to £9.7mln as product and territorial licences continued to perform well.
The company lifted its dividend to 16.6p from 14.8p last year.
During the period, the retailer opened two new stores in the US and one new store in the UK, China and France.
Ted Baker also expanded with licensee openings in Australia, Dubai, Kuwait, Lebanon, Mexico, Qatar, Saudi Arabia and Turkey.
The group said it plans to open new stores in Oxford and London Luton Airport and further concessions in the UK, Germany and Spain later this year. The company will also open a store in Montreal and an outlet in Chicago.