Ted Baker profits boosted by sales surge

Ted Baker said its autumn and winter collections have been well received
Ted Baker said its autumn and winter collections have been well received
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Fashion retailer Ted Baker said strong demand in Britain and North America boosted half-year sales by almost a quarter.

The firm, which has 416 stores and concessions worldwide, said group sales lifted 24.5 per cent in the 28 weeks to 15 August compared to a year ago as it opened new outlets in the UK, Canada and Europe.

The business posted a 14.6 per cent increase in first-half pre-tax profits to £17.8 million on strong trading from its established markets.

Retail sales in the UK and Europe increased 14.7 per cent to £120.9m, “reflecting a strong performance in our established UK market and a very good performance in continental Europe where we continue to expand”.

Ted Baker, founded by chief executive Ray Kelvin as a shirt specialist with a single Glasgow store in 1988, also opened a shop in London’s trendy Spitalfields to showcase its range of licensed products. The firm operates 184 stores and concessions in the UK.

In North America, retail sales increased by 37.4 per cent to £39.7m as it opened a new store in Vancouver and a number of concessions in US department stores.

Kelvin said: “This strong performance across all channels and territories is testament to the growing strength of Ted Baker as a leading global lifestyle brand.”

However, the group added that sales in August were impacted by unseasonable weather in the US and the effects of a strong dollar and a weak euro.

It said that trading in September is back on track and its autumn and winter collections for the season have been well received. The retailer also cautioned that its full-year results are weighted towards the second half of the year.

The interim dividend, to be paid on 20 November, was hiked by 16.8 per cent to 13.2p a share.