Ted Baker delivered a 19.2% surge in pre-tax profit to £28.9m in what has been a “significant” year for the brand’s international development.
In the year to January 26, the fashion brand’s retail sales increased 19.4% to £208m, driven by its UK and European business where sales jumped 11.1% to £165.1m. Retail sales in its US and Canada division soared 68.3% to £36.7m.
Ted Baker’s total sales, which includes its retail, wholesaling and licensing businesses grew 18% to £254.5m.
Sales across Ted Baker’s online business soared 63.7% to £14.9m and the retailer is preparing for a website relaunch later this year to support growth.
Ted Baker founder and chief executive Ray Kelvin told Retail Week: “I can’t explain why [we’re doing so well], it’s just what we do. It’s in our DNA.
“The most important thing is that we don’t dilute our focus and do things that are not important. The important things are design, quality and service. I think in this market you have got to be best in show.”
In the year, Ted Baker opened its first stores in Japan, China and Canada and opened new stores in London, New York’s Fifth Avenue and Hong Kong.
Ted Baker chairman David Bernstein said: “This has been a significant year for the group as we have further established the brand in existing markets and invested in newer markets for the longer term.”
The retailer said the new year has started well particularly in the UK where it will be opening an accessory-only store in Gatwick North Terminal in June and a store in Gatwick South Terminal towards the end of the year. Ted Baker has already opened a second store in Shanghai and is planning a third in the middle of the year.
Ted Baker is planning on growing its online business this year as it plans to relaunch its site in the UK and the US and it will launch a localised website in Australia next spring or summer.
It will also launch two new licenses in luggage and crockery towards the end of the year or the beginning of next year. Ted Baker has dipped its toe in these categories before but the new products are set to be full ranges that will initially be sold through its wholesale business with scope to retail in its fashion stores in future.
Despite the brand’s growth, Kelvin said its store in the Spinningfields shopping centre, Manchester is underperforming, and contributed to a £0.8m exceptional payment last year. The store opened in July 2011.
He said: “The whole development is not doing well. It’s just not taken off as we would expect. We’ve got a lease and we’ll carry on trading there.”