Surprise as Ted Baker's retail sales jump by 20%

Published on Thursday 19 November 2009 21:18

TED Baker, the international fashion retailer with Scottish roots, has reported stronger-than-expected UK sales in its third quarter.

The group said retail sales had been up 19.8 per cent on last year in the 13 weeks to 14 November, compared with a 15 per cent rise in the first half of the year. Retail square footage rose by 15 per cent in the period.

The firm said it was a continuation of trends seen in the first half, reflecting an unexpectedly buoyant UK performance offset by difficult trading conditions in overseas markets. Wholesale revenues continued to fall – they were down 25 per cent on the same period last year.

The business is in the process of shifting the weight from its troubled wholesale arm and transferring some of those accounts to retail concessions.

Ray Kelvin, the company's founder and chief executive, said: "Reactions to our autumn/winter collections have been positive, and we have also been pleased with our customers' response to Born by Ted Baker, our highly designed men's casualwear collection which was launched in August."

Overall group sales in the period were 8.2 per cent higher than last year.

Katharine Wynne, at Investec Securities, said she had upped full-year forecasts for next year on the basis of yesterday's figures.

"We believe Ted Baker, as a long-term growth story with an established international business, should command a premium valuation to the mid cap FTSE retailers and remain buyers," she said.

Ted Baker was founded by London-born Kelvin as a men's shirt outlet in Glasgow in 1987. Expansion across the UK quickly followed.