Ted Baker PLC (LON:TED) maintained its annual guidance after an increase in retail sales over the Christmas period but warned trading conditions are expected to remain challenging in the year ahead.
The British fashion retailer reported a 9.0% increase in retail sales in the eight weeks to 6 January, compared to the same period last year. At constant exchange rates, retail sales grew 10.5%.
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E-commerce sales jumped 35.0% on a reported basis or 36.4% at constant currency, representing 30.1% of total retail sales.
The growth was supported by the company’s expansion with the opening of a new store in Montreal, further concession openings in Germany and Spain and an additional store in each of Malaysia, Mexico and Qatar with licence partners.
The group said gross margins were in line with our expectations and it anticipates it will end the year with a “clean stock position”.
“The Ted Baker brand has continued to perform in line with expectations over the Christmas period, delivering a good retail performance driven by particularly strong growth from e-commerce, which is an increasingly important part of our retail business,” said chief executive and founder, Ray Kelvin.
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“Whilst external trading conditions are expected to remain challenging in the year ahead, the strength of our brand and business model means that we remain well positioned to continue the long-term development of Ted Baker as a global lifestyle brand."
UK retailers have been affected by a slowdown in consumer spending as higher inflation cuts into disposable incomes.