7th Oct 2013 08:32
LONDON (Alliance News) - Ted Baker's trading update has confirmed that it is experiencing high growth in all territories, says Jefferies. The company reported sales growth of 31%, with EBIT of GBP12.6 million in the first half, in line with expectations. The investment bank says it is starting to see evidence of the so-far untapped global consumer demand for the clothing brand.
Retail sales density figures, which exclude online sales, for the UK and Europe have risen by 15%, with a 21% increase in the US. Alongside this, Jefferies is confident that the US retail business will reach approximately GBP55 million for the full year, more than five times the GBP10 million secured in 2009-2010. Online sales also are strong. The clothing company has seen an increase of 52% in online sales to GBP9.4 million.
Jefferies also is positive about Ted Baker's progress in the Asian market. Although this remains a relatively new region for the company. The investment bank expects it to support annual growth rates of approximately 20% as it gains critical mass in the area.
Jefferies has maintained its Buy recommendation with a price target of 2,150 pence and expects the company to "continue to enjoy a sustained period of strong growth."
Ted Baker's shares are one of the biggest risers on the FTSE 250 Monday morning, up 0.9% at 1,852.99p.
By James Kemp; [email protected]; @jamespkemp
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