Ted Baker has posted a 5.4 per cent pre-tax profits increase to £7.4 million for the first half to August 9, but revealed that trade in the past two weeks has been affected by the turmoil in the banking world and unseasonably warm weather.
Retail sales increased 17.5 per cent to£53.3 million in the 28-week period. Wholesale sales dropped 12.1 per cent to£18.3 million. Licence income rose 26.1 per cent to£2.9 million.
Ted Baker founder and chief executive Ray Kelvin said the quirky fashion retailer’s board is “mindful of the uncertain economic environment and we remain understandably cautious about trading in the second half of the year”. He added that the response to its autumn collection had been positive.
The retailer said that group sales during the 28-week period climbed 8.2 per cent to£71.6 million.
Ted Baker’s menswear sales rose 6.9 per cent to£38.9 million to represent 54.3 per cent of total sales. Ted Baker’s womenswear sales climbed 12.6 per cent to£30.3 million, comprising 42.3 per cent of total sales.
Childrenswear and footwear sales were£2.4 million compared with£2.9 million the previous year.
Sales in the UK and Europe retail division jumped 18.5 per cent to£48.1 million. In the US, where the retailer has eight stores, sales grew 9.4 per cent to US$10.5 million.
Ted Baker launched its second womenswear-only store on South Molton Street in London during the period and opened stores at Cheapside in London, Heathrow Terminal 5, Belfast and Cambridge. Since the end of the period it has opened stores in Bristol and Liverpool and is set to open in Westfield London.
Landsbanki analyst Paul Deacon said: “Despite its younger customer profile, it is probably wishful thinking to expect Ted Baker to escape completely unscathed from the downturn.
“However, the company’s business model is very resilient and we continue to expect the company to make modest earnings progress in sharp contrast to most other retailers.”
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