Quirky fashion retailer Ted Baker’s sales grew ahead of expectations last year and the retailer reported a 24.2% surge in profits.
Pre-tax profits rose to £24m for the year ending January 29, when sales increased 14.7% to £187m.
Turnover at its UK and Europe retail division advanced 8.2% to £137m. Overall retail sales were up 11.9% to £153m. Total retail square footage globally increased 5.2% to 229,026 sq ft, and retail sales per sq ft increased 2.5% to £648.
Verdict lead analyst Maureen Hinton said the strong results demonstrated that there were still growth opportunities for British retailers, but observed: “These require a very distinct brand that stands out from the crowd.”
Singer analyst Matthew McEachran said the results were a little ahead of expectations, driven by strong growth at the end of the year and margin gains in wholesale.
McEachran said that, despite subdued trade in February, the recent trend was “encouraging” and there had been a good reaction to the new collections.
Ted Baker founder and chief executive Ray Kelvin said the economic outlook for 2011 was “uncertain” but is confident the retailer is well placed to trade through tough times.
Oriel analyst Ben Hunt said: “With its product priced at the higher end of the market, we think Ted Baker has a degree of immunity from the malaise seen across the wider high street.”