13th Nov 2014 07:46
LONDON (Alliance News) - Fashion company Ted Baker PLC Thursday said revenue grew 15.7% in the 13 weeks to November 8 as it grew sales from existing space and expanded, but it cautioned that gross margin in the second half of the year to be slightly down on the year because it's selling a greater proportion of lower-margin goods.
The maker of men's and women's fashions and accessories said retail sales were up 12.7% in the 13 weeks between August 10 and November 8 compared with a year earlier, as average retail square footage rose 9.5%. Sales would have been up 14.7% if currency exchange rates had remained constant, it said.
"We have been pleased with the performance in our established territories, and we continue to invest in newer markets for the long-term development of the Ted Baker brand. Our international expansion continued with successful store openings in Las Vegas and Toronto, and further concession openings in premium department stores in the US, the Netherlands, France, Spain, Portugal and South Korea," it said.
The British fashion brand also said it is growing online, with e-commerce sales up 34.6% in the 12 weeks, reflecting further growth in the UK and the migration of its US site to a new platform in July.
Wholesale sales rose 24.7%, or 25.4% at constant currencies, driven by strong growth in both the UK and US. It said its US wholesale business is doing particularly well as its brand gains traction on that side of the Atlantic.
"Growth in the UK wholesale business was also driven by the continued success of our international licence partners, particularly in the Middle East. We anticipate group wholesale sales for the full year to be around 20% ahead of last year on a reported basis," it said.
"The reaction to our Autumn/Winter collections across our international markets has been very encouraging and we have further store openings planned for the coming months in Miami and Heathrow Terminal 4, and a further outlet store in China," founder and Chief Executive Ray Kelvin said.
"We are pleased with our strong performance to date. However, as ever, the group's full year results will be dependent on trading over the important Christmas period," he added.
Ted Baker will put out a trading update for the weeks between November 9 and January 3 in mid-January.
By Steve McGrath; [email protected]; @stevemcgrath1
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