Ted Baker buttons up 20% increase in store sales

Analysts lifted profit targets after the designer brand's latest update for the 19 weeks to 12 June showed 10 per cent growth in like-for-like sales at the group, which originally started as a men's shirt outlet in Glasgow in 1987. This was much better than the low-to-mid single digit like-for-like sales growth forecast by the City.

Broker Panmure Gordon increased its profits forecast for Ted Baker by 4 per cent to 23.5 million for the year to January 2011.

Baker said trading in the UK was good, while the recently improving trend in its overseas markets had continued.

Founder and chief executive Ray Kelvin said that whilst Baker was "mindful of the uncertain macro economic environment", the company's strengths continued to drive the business forward "and we have been pleased with the customer response to our spring summer collections".

The company has 33 stores in UK and Europe, plus 151 concessions and ten outlet sites.

Baker grew total turnover 18 per cent on the same period last year, helped by the wholesale business growing sales 8.2 per cent.

Singer Capital Markets' analyst Matthew McEachran said Baker's UK business was "clearly in excellent shape".