2nd Oct 2014 06:40
LONDON (Alliance News) - Ted Baker PLC Thursday reported another set of stellar growth figures for the first half of its financial year, as profit growth continues to be driven by its successful online business and strong growth in the UK and expansion overseas.
The British clothing and accessories retailer declared a near 19% increase in its interim dividend, after reporting pretax profit of GBP15.6 million for the six months ended August 9, up 34% on the GBP11.6 million profit it recorded in the first half of last year.
Its pretax profit before exceptional items, which includes a GBP3.7 million profit gain from the early termination of its licence partner agreement, still rose 24% to GBP14.4 million. Some of the exceptional gain was wiped out by a GBP2.6 million exceptional cost relating to a legal dispute with a previous insurer.
This was driven by a 17% increase in revenue to GBP182.2 million, up from GBP155.2 million in the same period a year earlier. Within this, retail sales, including online, grew by almost 15% to GBP140 million, buoyed by new store openings and driven by 15% retail sales growth in the UK and Europe, 16% growth in Asia, and US and Canada sales up almost 14%. Wholesale sales rose 27% to GBP42.1 million, and licence income was up 37% to GBP5.5 million.
Analysts were looking for a pretax pre-exceptional profit of around GBP14 million and GBP181 million in revenue.
"Whilst our results for the full year will be dependent on the more weighted second half, we continue to look forward with confidence as we further develop Ted Baker as a leading global lifestyle brand," said Founder and Chief Executive Ray Kelvin in a statement.
Ted Baker has seen its business driven by strong trading in the UK and the US, further international expansion into markets like Asia and Latin America, and its online business. It has also held up relatively well in a very competitive trading environment in the UK retail sector.
"We have successfully opened new space in our international markets, with further planned for the second half of the year in line with our strategy to focus on expansion opportunities that are appropriate for our brand," said Kelvin.
Ted Baker said it opened two new stores in the UK during the first half, as well as a new store and outlet in France and the US. It also opened further concessions with department stores across the US, Europe and Asia, and license store openings in Dubai, Egypt, Saudi Arabia and Australia.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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