10th Jun 2014 07:39
LONDON (Alliance News) - Ted Baker PLC Tuesday reported strong sales growth in the first 19 weeks of its new financial year, which it said continues to be driven by a strong performance across the business, especially in the UK and North America.
The British clothing and accessories retailer has seen its business driven by strong trading in the UK and the US, further international expansion, and its online business. It has also held up relatively well in a very competitive trading environment in the UK retail sector.
"The Ted Baker brand has continued to perform very well, and we have delivered further progress across our global markets and distribution channels," said Founder and Chief Executive Ray Kelvin in a statement.
Group revenues increased almost 18% in the 19 weeks period to June 7, with retail sales up 16% and wholesale sales up 25%.
Whilst the company continues to report strong growth, it marks a marked slowdown in growth on the previous year.
In the 20 week period to June 15 last year, Ted Baker reported a 33% increase in group revenues, with retail sales up 31%, boosted by a 13% increase in new retail space, and wholesale up 41%, supported by the phasing of its sales.
The company's gross margins remain flat, however, it said.
In the 19-week period just ended, Ted Baker said retail sales were boosted by a 9.5% increase in average retail square footage, while its online business saw sales rise 48%, benefiting from the successful launch of its new e-commerce platform.
Wholesale sales were driven by a good performance from Ted Baker's UK and export business, and a strong performance from its US wholesale business, where the brand continues to gain traction. It said it currently expects to see low double digit growth for the full year from its wholesale division.
Ted Baker said it is also pleased with the performance of its Spring/Summer collections both in the UK and internationally.
The retailer has been pumping money into investing in overseas expansion, especially in Europe, North America and Asia. In line with its big expansion plans, the company told Alliance New last year that it plans to double the number of stores in China, as its hopes Chinese consumers will jump on the affordable luxury bandwagon.
So far this year, Ted Baker has opened two new stores in the UK: in Glasgow and in the reopened Heathrow Terminal 2. In the US, the company opened a new store in Philadelphia, two new concessions through a department store, and a further outlet in California. In Europe, it has opened further concessions in Spain, France and the Netherlands and an outlet in Paris, France, while in Asia it has opened two more concessions with a department store in Tokyo.
Ted Baker said its product and territorial licences also continue to perform well, with new licensed store openings in Dubai, Cairo and Saudi Arabia.
"We also opened a new store in Brisbane with our Australasian joint venture partner," the company said in a statement.
Ted Baker said it will release its interim results for the 28 weeks ending August 9, on October 2.
Ted Baker shares were up 0.1% at 2,021.00 pence in early trading Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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