Fashion retailer Ted Baker’s has posted preliminary pre-tax profits up 0.1% to £24.3m after incurring exceptional costs, but revenues advanced 14.9% to £215.6m
Sales at its UK and Europe retail division rose 8.7% to £148.6m, and total retail sales increased by 14.1% to £174.2m in the year to January 28, when retail square footage increased by 6.6% .
Its UK-based website generated soaring sales up 42.2% to £9.1m. The retailer’s wholesale sales surged 18.5% to £41.4m.
Ted Baker’s profit was hit by £2.8m exceptional costs incurred for rent for stores opening in the new financial year, set-up costs for expansion into China and a “provision for bad and doubtful debts in respect of our exposure in Greece”. Group profit before tax and exceptionals advanced 11.7% to £27.1m.
Ted Baker founder and chief executive Ray Kelvin said: “The group’s excellent results for the year, delivered against a challenging trading backdrop, are testament to the strength of the Ted Baker brand, our collections and, above all, the energy and commitment of our team in bringing Ted to the world stage.”
Ted Baker focused on overseas store expansion during the year. It opened its first stores in Japan and Korea, and new stores in Europe and Hong Kong, where it sees further growth opportunity.
Ted Baker has also grown the brand across the US by opening department store concessions, while its planned Fifth Avenue store in New York will open in July. It is opening its first store in Toronto, Canada in November and stores are to open in Beijing and China in the middle of the new financial year.
It opened a new store in Manchester but as part of an ongoing review of its store portfolio, the retailer closed London stores in Langley Court and Westbourne Grove. It also closed concessions across Italy.
The retailer reported that the new financial year had “started well” across all its markets.
Chairman Robert Breare added: “We continue to ensure that our costs and commitments are controlled and in line with trends anticipated for 2012.
“We remain focused on our multichannel distribution strategy and look forward to the further expansion of the Ted Baker brand in existing and new international markets.”