Ted Baker stays cautious

Fashion label and retailer Ted Baker yesterday said it remained cautious ahead of the crucial Christmas period, despite a 25 per cent hike in half-year profits.

The designer brand noted that the strong performance in the 28 weeks to 28 August was driven by womenswear sales and improved trading overseas.

It has made a good start to the second half of the year but said its annual results were dependent on festive trading, and it was wary given the "uncertain economic environment".

The group posted pre-tax profits of 7.5 million in the first half, on group revenues of 88.1m, up from 76.6m last year. Matthew McEachran, an analyst at Singer Capital Markets, said the figures were likely to put upward pressure on forecasts for the full year.

He said: "Although comparatives get tougher in the second half, current trading remains robust and Ted Baker's positioning leave it well placed to continue out-performing if domestic conditions get tougher."

The retailer plans to open stores in the Trafford Centre, Manchester, Paris and Hong Kong, early next year, as well as further US stores in Chicago and New York this year.

It saw a 17.3 per cent increase in womenswear sales to 43.3m. while menswear was up 12.8 per cent to 44.8m