Ted Baker PLC (LON:TED) has announced increase in revenue and said it is focused on delivering full year expectations, despite challenging external trading conditions.
In a trading update, the FTSE 250-listed firm announced a 4.2% increase in revenue for the 19 week period from 28 January 2018 to 9 June 2018, compared to the year before.
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“This performance was achieved despite the impact of unseasonal weather across Europe and the East Coast of America in the early part of the period and, as previously reported, external trading conditions remaining challenging across many of our global markets,” UK fashion retailer said.
Ted Baker said total retail sales including e-commerce increased by 0.7% (3.6% in constant currency). E-commerce sales increased by 33.6% (36.2% in constant currency).
“Our flexible business model, including a relatively low number of own stores, enables us to respond to structural changes in the retail sector,” the company said.
Wholesale sales for the period increased by 14.2% reflecting good performance in UK and North America and earlier timing of wholesale deliveries.
The company said it continues to anticipate achieving at least high single digit growth (in constant currency) in the wholesale business for the full year, and said both retail and wholesale grow margins were in line with expectations.
Ray Kelvin CBE, founder and chief executive, said: “We have made significant investment in our flexible business model to ensure that the Ted customer has multiple channels to engage with the brand.”
In a note to clients, Liberum Capital said it left its forecasts unchanged with ‘buy’ rating and 3,300p price target.
The analysts said the strength in E-commerce, wholesale and licencing has helped offset some of the retail store pressure and this would not be possible but for the strength of the brand.
“Some may see retail as disappointing, but we leave forecasts unchanged and note the five-year through PE rating as an opportunity.”
In early morning trading, Ted Baker’s shares fell 2.93% to 2,316.0p.
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