Interim Results

3 October 2013

Ted Baker PLC

("Ted Baker", the "Group")

Interim Results for the 28 weeks ended 10 August 2013

'Strong performance across all channels'

· Retail sales including e-commerce up 30.2% on a 12.4% increase in average square footage

o UK and European retail sales up 22.6% to £91.6m

o US and Canada retail sales up 56.8% to £25.4m

o Asia retail sales up 78.6% to £5.0m

· E-commerce sales up 51.6% to £9.4m

· Planned expansion continued with:

o Two new stores and an outlet in Shanghai, China

o Further concessions with a leading department store in the US and an outlet in Toronto, Canada

o Further concessions in France, Spain, the Netherlands, and an outlet in Belgium

· Wholesale sales up 33.4% to £33.2m

· Licence income up 7.4% to £4.0m

 Commenting, Ray Kelvin CBE, Founder and Chief Executive, said:

"We have been pleased with the Group's performance across all distribution channels. The last 12 months have seen Ted Baker enter six new international markets and we have been encouraged by the reaction to the brand and collections in these latest territories.

Our results for the full year will, as always, be dependent on the important second half trading period. However, early trading has been positive across the business and we remain focussed on managing the pace of our growth and development of Ted Baker as a global brand.

Our performance is testament to the passion and dedication of the Ted team throughout the world."

www.tedbaker.com

www.tedbakerplc.com

Media images available for download at:

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Notes to Editors

Ted Baker PLC - "No Ordinary Designer Label"

Ted Baker is a leading global lifestyle brand distributing across five continents through its three main distribution channels: retail (including e-commerce), wholesale and licensing.

Ted Baker has 341 stores and concessions worldwide, comprising of 178 in the UK, 60 in Europe, 58 in the US and Canada, 40 in the Middle East and Asia and 5 in Australasia.

Ted Baker offers a wide range of collections including: Menswear; Womenswear; Global; Phormal; Endurance; Born by Ted Baker; Accessories; Lingerie and Sleepwear; Childrenswear; Fragrance and Skinwear; Footwear; Neckwear; Eyewear; Watches; and Jewellery, all of which are underpinned by an unwavering emphasis on design, product quality and attention to detail.

Development of the brand

Our strategy is to become a leading global designer brand, based on three main elements:

· considered expansion of our collections. We review our collections continually to ensure we react to trends and meet our customers' expectations. In addition, we look for opportunities to extend the breadth of collections and enhance our offer;

· controlled distribution through three main channels: retail (including e-commerce); wholesale; and licensing. We consider each new opportunity to ensure it is right for the brand and will deliver margin led growth; and

· carefully managed development of existing and new international markets. We continue to manage growth in existing territories while considering new territories for expansion.

Underlying our strategy is an emphasis on design, product quality and attention to detail, which is delivered by the passion, commitment and dedication of our teams, licence partners and wholesale customers.

Chairman's Statement

I am pleased to announce a strong performance for the first half of the year, resulting in a 30.9% increase in Group revenue to £155.2m and a 49.7% improvement in profit before tax to £11.6m. Profit before tax, exceptional costs and an employee performance related bonus provision increased 33.0% to £12.5m and profit before tax and exceptional costs increased 24.3% to £11.6m.

The retail division performed well, with sales up 30.2% on a 12.4% increase in average retail square footage. We are pleased with our performance across all established territories, and encouraged by the reaction to the Ted Baker brand and collections in our newer markets. During the first half of the year, we have continued to invest in the long term development of the brand with further concessions in the US and Europe and new outlets in Belgium and Canada. We have continued our expansion in Asia with two store openings and an outlet in Shanghai, China.

Wholesale sales were up 33.4% to £33.2m. Whilst reflecting a strong performance in both our US and UK wholesale business, which includes the supply of goods to our licensed stores, growth was positively impacted by the earlier phasing of sales between the first and second half of the year.

Licence income increased by 7.4% to £4.0m as both our product and territorial licences continued to perform well. During the period our licensed partners opened stores in Adelaide, Kuwait, Beirut, Jakarta and Dubai.

Financial Results

Group revenue increased by 30.9% to £155.2m (2012: £118.6m) for the 28 weeks ended 10 August 2013 ("the period"). The composite gross margin fell to 59.7% (2012: 60.6%), due to a lower wholesale gross margin. This lower wholesale gross margin was the result of a greater proportion of wholesale sales to our territorial license partners, which carry a lower margin and a slight reduction in the underlying wholesale margin due to the product mix.

Operating expenses increased in line with expectations by 27.4% in the period to £84.0m (2012: £65.9m), which is reflective of our significant investment in people and infrastructure to support the longer term development of the brand through our international expansion. Over the last year this included entry into six new countries, two of which were through a licensed partner. Distribution costs, which largely comprise the cost of retail stores, outlets and concessions increased by 28.4% to £62.0m (2012: £48.3m) and as a percentage of retail sales decreased to 50.9% (2012: 51.6%).

Administrative expenses increased by 24.7% to £21.9m (2012: £17.6m) due to the growth of central operations within the UK and overseas to support our expansion into new and existing international markets. Excluding the employee performance related bonus provision of £0.9m (2012: Nil), administrative expenses increased by 19.3% to £21.0m. Exceptional costs for the period were nil (2012: £1.6m).

Profit before tax, exceptional costs and bonus provision increased 33.0% to £12.5m (2012: £9.4m) and profit before tax and exceptional costs increased by 24.3% to £11.6m (2012: £9.4m). Profit before tax increased 49.7% to £11.6m (2012: £7.8m). Adjusted basic earnings per share excluding exceptional costs increased by 20.2% to 20.2p (2012: 16.8p) whilst basic earnings per share increased by 45.3% to 20.2p (2012: 13.9p). Diluted earnings per share rose 48.5% to 19.6p (2012: 13.2p) whilst adjusted diluted earnings per share rose 23.3% to 19.6p (2012: 15.9p).

Net interest payable during the period was £0.5m (2012: £0.2m). This increase reflects higher Group borrowing compared to the prior period due to significant capital expenditure and increased working capital. The foreign exchange loss during the period of £0.6m (2012: loss of £0.1m) was due to the retranslation of monetary assets and liabilities denominated in foreign currencies.

The effective tax rate of 25.9% (2012 full year effective rate: 25.3%) is higher than the UK corporation tax rate due to higher overseas tax rates and to the non-recognition of losses in some overseas territories during their development phase.

The net decrease in cash and cash equivalents of £19.3m (2012: £20.7m) primarily reflected an increase in inventories and further capital expenditure during the period.

Total working capital, which comprises inventories, trade and other receivables and trade and other payables, increased by £16.9m to £75.3m (2012: £58.4m). This was mainly due to a £16.9m increase in inventories to £75.8m (2012: £58.9m) reflecting the growth of our business and some earlier phasing of stock deliveries between the first and second half of the year. The increase in intangible assets reflects our investment in a new e-commerce platform and other systems to support our future growth.

Capital expenditure of £8.1m (2012: £12.9m) reflected the opening and refurbishment of stores and concessions in both new and existing markets, as well as investment in some new stores and concessions due to open in the second half of the year. We have invested in a new e-commerce platform, which will go live during the second half of the year. We expect full year capital expenditure to be in the region of £18.0m.

Borrowing Facilities

In July, the Group increased its three year committed borrowing facility with the Royal Bank of Scotland and Barclays from £40.0m to £50.0m. This will remain in place until the facility expires on 1 March 2015. The increase is a function of the growth in our business and will also support further store openings.

Dividends

The Board has declared an interim dividend of 9.5p (2012: 7.9p), representing an increase of 20.3%, which will be payable on 22 November 2013 to shareholders on the register at the close of business on 18 October 2013.

People

Our strong performance in the first half of the year is testament to the passion and commitment of the Ted team throughout the world. I would like to take this opportunity to thank all of my colleagues for their dedication and hard work as we continue to successfully develop the Ted Baker brand both in the UK and internationally.

It is with great sadness that I have to report that Robert Breare, a colleague and former Non-Executive Chairman, passed away in July. During his 11 year tenure, Robert combined his entrepreneurial insight with an infectious enthusiasm for the business to make a major contribution to the Company during a significant period of global development. The Company acknowledges his contribution with gratitude and he will be sadly missed by his colleagues.

Global Group Performance

Retail

We operate stores and concessions across the UK, Europe, the US, Canada and Asia and an e-commerce business based in the UK, primarily serving the UK and Europe, with a separate site dedicated to the Americas. We also have an e-commerce business with some of our concession partners.

Retail sales, including e-commerce, were up 30.2% to £122.0m (2012: £93.7m) with average retail square footage increasing by 12.4% to 297,011 sq.ft (2012: 264,138 sq.ft). Retail sales per square foot increased 14.5% to £379 (2012: £331).

Our e-commerce business performed well during the period, resulting in a 51.6 % increase in sales to £9.4m (2012: £6.2m), driven by growth across all channels.

The retail gross margin increased slightly to 64.7% (2012: 64.6%).

Retail operating costs increased in line with our expectation to £61.5m (2012: £47.8m), with an increase in retail contribution margin to 14.2% (2012: 13.6%).

Wholesale

We currently operate a wholesale business in the UK serving Europe, and our license partners across the world. We also operate a wholesale business in the US from an office in Los Angeles

Group wholesale sales were 33.4% above the same period last year at £33.2m (2012: £24.9m) with a gross margin of 41.5% (2012: 45.4%). Whilst this reflects a good performance from UK and US wholesale business, the result was positively impacted by the earlier phasing of sales between the first and second half of the year.

The fall in wholesale margin is reflective of a greater proportion of wholesale sales to our territorial license partners which carry a lower margin and a slight reduction in the underlying wholesale margin due to the product mix. We anticipate the wholesale margin in the second half of the year being closer to the same period last year.

Licence Income

We operate both territorial and product licences. Our territorial licences cover the Middle East, Asia and Australasia, through which we operate licensed retail stores and, in some territories, wholesale operations. Our product licences cover lingerie and sleepwear, fragrance and skinwear, watches, footwear, eyewear, men's suits, neckwear, jewellery and childrenswear.

Licence income was up 7.4% to £4.0m (2012: £3.7m) as a result of a good performance across both territorial and product licences. Notably there were good performances from our product licensees in footwear, eyewear and men's suits. Our licensed stores in the Middle East and Asia, operated by our territorial partner, RSH Limited, also performed well during the period with further openings planned as a result.

Collections

Ted Baker Womenswear delivered a very strong performance with sales up 35.7% to £89.7m (2012: £66.1m). In addition to performing very strongly, Womenswear also benefitted from a disproportionate share of new space opened in the period. Ted Baker Menswear also performed very well with sales increasing 24.8% to £65.5m (2012: £52.5m), reflecting a positive reaction to the collections both in the UK and internationally.

Womenswear represented 57.8% of total sales (2012: 55.7%) during the period and Menswear represented 42.2% of total sales (2012: 44.3%) during the period. The split between both is broadly reflective of the division in retail selling space between Womenswear and Menswear.

Geographic Performance

United Kingdom & Europe

Sales in the period in the UK and Europe increased 25.1% to £119.7m (2012: £95.7m).

Sales in the retail division were up 22.6% to £91.6m (2012: £74.7m). During the period we opened concessions with leading department stores in France, Spain and the Netherlands along with an outlet in Belgium. The reaction to the collections has been encouraging. In the UK, we opened an accessories store at Gatwick airport and closed the Kings Road store.

Average square footage rose by 4.2% over the period to 209,653 sq.ft (2012: 201, 153 sq.ft), largely driven by growth in Europe. At 10 August 2013, total retail square footage was 211,594 sq.ft (2012: 203,989 sq.ft), representing an increase of 3.7%. Retail sales per square foot increased by 15.2% from £342 to £394 reflecting the strength of our collections both in the UK and Europe.

At 10 August 2013, we operated 34 stores (2012: 34), 193 concessions (2012: 171) and 11 outlet stores (2012: 10).

Sales from our UK wholesale business increased by 34.3% to £28.2m (2012: £21.0m) reflecting a good performance from our UK wholesale business and continued growth in our wholesale export business. However, part of this increase is due to earlier phasing of sales between the first and second half of the year.

US & Canada

Sales in the period in the US and Canada increased 47.3% to $46.7m (2012: $31.7m), which in sterling was a 51.7% increase to £30.5m (2012: 20.1m). We are pleased with the significant progress we are making across all distribution channels in the US and Canada and the brand continues to gain traction and recognition.

Sales from our retail division increased by 52.0% to $38.9m (2012: $25.6m), which in sterling was equivalent to sales up 56.8% to £25.4m (2012: £16.2m). During the period we opened further concessions through a leading department store in the US and an outlet in Toronto, Canada.

Average square footage rose 28.5% over the period to 69,703 sq.ft (2012: 54,261 sq.ft). At 10 August 2013, total retail square footage was up 20.6% on last year at 73,877 sq.ft (2012: 61,266 sq.ft). Retail sales per square foot rose 20.5% from $464 to $559.

As at 10 August 2013, we operated 37 concessions across the United States and Canada (2012: 26), 16 stores (2012: 15) and 5 outlet stores (2012: 3).

Sales from our US wholesale business increased by 25.8% to $7.8m (2012: $6.2m) reflecting the continued growth of the business in this territory.

Middle East, Asia & Australasia

We continue to develop the Ted Baker brand across the Middle East, Asia and Australasia, through our retail and licensing channels. We work closely with our territorial partners to ensure the visual merchandising of the licensed stores and training of the teams is reflective of the Ted Baker culture.

Retail sales in Asia increased 78.6% to £5.0m (2012: £2.8m), with average square footage up 102.4% to 17,655 sq.ft (2012: 8,724 sq.ft). Whilst we have been encouraged by the reaction to the brand, we are mindful that we are in the very early stages of growth in this territory, and continue to make considerable investment in people and infrastructure to support the long term growth of the brand.

Our expansion in Asia continued during the period with the opening of two stores and an outlet in Shanghai, China and our first concession with a leading department store in Tokyo.

In May, we opened two stores in Jakarta, Indonesia, with our licence partner in this territory, RSH Limited. As a result, as at 10 August 2013, we operated a total of 28 stores across Asia (2012: 20).

Our licensed stores across the Middle East continued to perform well during the period, with openings in Lebanon, Kuwait and Dubai. As at 10 August 2013, we operated 12 stores across the Middle East (2012: 7 stores).

In March, we opened a store in Adelaide, Australia through a joint venture with our Australasian licence partner, Flair Industries Pty Ltd, which has started well. As at 10 August 2013, we operated 5 stores in Australasia (2012: 4 stores).

Current Trading and Outlook

Group

The Ted Baker brand continues to perform well and we are encouraged by the positive reaction to our Autumn/Winter collections.

We believe that we are well placed to deal with the opportunities and challenges ahead and look forward to the continuing expansion and long term investment in our business in the UK and overseas in the second half of the year.

Retail

The second half has started in accordance with our expectations and we have continued our international expansion by opening further concessions in Europe and our first concessions in China through a leading department store. As we reach the anniversary of our significant retail openings last year, the increase in average retail selling space will necessarily reduce in the second half. As a result, we expect the level of retail growth in the second half of the year to be below that of the first half.

As part of the ongoing review of our store portfolio, we anticipate some one-off costs in the second half of the year as we exit stores that are no longer appropriate for the brand, or take the opportunity to relocate to better locations.

We will launch our new e-commerce platform for the UK during the second half of the year. This will drive multi-channel opportunities and provide local content to our European customers, contributing to the long term development of the brand in our international markets.

Wholesale

The strong performance in our UK and US wholesale business has been positively impacted by the earlier phasing of sales between the first and second half of the year. As a result of this, we anticipate low double digit growth in our wholesale business in the second half of the year.

Licence Income

Our product and territorial licences continue to perform in line with expectations. Our licence partner in the Middle East will be opening stores in Abu Dhabi and Cairo in the second half of the year.

Outlook

Whilst we have made a strong start to the financial year, our results for the full year will, as always, be dependent on the second half trading period. We will continue to manage the pace of our investment for the long term development of Ted Baker as an international brand.

We intend to make our next interim management statement, covering the period since the start of the second half of the financial year, in mid-November.

David Bernstein

Non-Executive Chairman

03 October 2013

Condensed Group Income Statement

For the 28 weeks ended 10 August 2013

Condensed Group Statement of Comprehensive Income

For the 28 weeks ended 10 August 2013

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 10 August 2013

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 11 August 2012

Condensed Group Statement of Changes in Equity - Audited

For the 52 weeks ended 26 January 2013

Condensed Group Balance Sheet

At 10 August 2013

Condensed Group Cash Flow Statement

For the 28 weeks ended 10 August 2013

Notes to the Condensed Interim Financial Statements

For the 28 weeks ended 10 August 2013

1. Basis of preparation

a. Reporting entity

Ted Baker PLC is a company domiciled in the United Kingdom. The condensed interim financial statements ("interim financial statements") of Ted Baker PLC as at, and for the 28 weeks ended, 10 August 2013 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group financial statements as at, and for the 52 weeks ended, 26 January 2013 are available upon request from the Company's registered office at Ted Baker PLC, The Ugly Brown Building, 6a St. Pancras Way, London NW1 0TB or at www.tedbakerplc.com.

b. Statement of compliance

These interim financial statements have been prepared in accordance with "IAS 34 Interim Financial Reporting" as adopted by the EU and the requirements of the Disclosures and Transparency Rules. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group financial statements as at, and for the 52 weeks ended, 26 January 2013. These interim financial statements were approved by the Board of Directors on 3 October 2013.

The comparative figures for the 52 weeks ended 26 January 2013 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. These sections address whether proper accounting records have been kept, whether the Company's accounts are in agreement with these records and whether the auditors have obtained all the information and explanations necessary for the purposes of the audit.

The financial information in this document is unaudited, but has been reviewed by the auditors in accordance with the Auditing Practices Board guidance on Review of Interim Financial Information.

c. Going concern

The Group financial statements for the 52 weeks ended 26 January 2013, approved by the Board on 21 March 2013, included information on the business environment in which the Group operates, including the factors that are likely to impact the future prospects of the Group, together with the principal risks and uncertainties that the Group faces. In addition, the notes to the consolidated financial statements set out the Group's objectives, policies and processes for managing its financial and capital risk and its exposures to credit, market and liquidity risk. Many of the risks and uncertainties reported are such that their potential to impact the Group's operations are inherent and remain valid as regards to their potential impact during the second half of 2013. The impact of the economic environment in which the Group's businesses operate is considered in the Chairman's Statement.

The Directors have prepared trading and cash flow forecasts for a period of one year from the date of approval of these interim financial statements. The Directors have a reasonable expectation that the Group has adequate cash headroom and expects to meet all banking covenant requirements. Accordingly, they continue to adopt a going concern basis in preparing the financial statements of the Group.

d. Significant accounting policies

The accounting policies adopted in these interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the 52 weeks ended 26 January 2013. Adoption of amendments to published standards and interpretations effective for the Group for the half year ended 10 August 2013 have had no significant impact on the financial position and performance of the Group.

2. Segment information

Segment revenue and segment result

3. Exceptional costs

The directors believe that the profit before exceptional items and the adjusted earnings per share measures provide additional useful information for shareholders on the underlying performance of the business. These measures are consistent with how underlying business performance is measured internally.

The exceptional profit before tax measure is not a recognised profit measure under IFRS and may not be directly comparable with adjusted profit measures used by other companies.

Exceptional costs for period were nil (11 August 2012: £1.6m, 26 January 2013: £2.6m).

Exceptional costs incurred for the period ended 26 January 2013 were in respect of £1.6m rent paid in advance for stores that did not commence trading until the second half of the period. The balance of £1m included an impairment charge of £0.8m in respect of some retail assets, notably a retail development in the UK that has failed to deliver on its potential. The remaining £0.2m related primarily to set up costs incurred for our expansion in China.

4. Finance income and expenses

5. Earnings per share

* Adjusted profit for the period and adjusted earnings per share are shown before exceptional costs of £nil (28 weeks ended 11 August 2012: 1,589,000, 52 weeks ended 26 January 2013: £2,614,000).

6. Dividends per share

The Board has declared an interim dividend of 9.5p per share (2012:7.9p) payable on 22 November 2013 to shareholders on the register at 18 October 2013.

7. Income tax expense

The Group's full year forecast effective tax rate in respect of continuing operations for the 28 weeks ended 10 August 2013 was 25.9% (28 weeks ended 11 August 2012:25.3%, 52 weeks ended 26 January 2013:25.3%).

The effective tax rate is higher than the UK rate due to higher overseas tax rates and to the non recognition of losses in overseas territories where the businesses are still in their development phase. On 1 April 2013 the UK corporation tax rate fell from 24% to 23%. A further reduction to 21% (from 1 April 2014) was substantively enacted in July 2013 and our closing deferred tax assets and liabilities have therefore been remeasured. The proposed future reduction in the UK tax rate to 20% will be reflected when the relevant legislation is substantively enacted.

Our future effective tax rate is expected to be higher than the UK tax rate as a result of overseas profits arising in jurisdictions with higher tax rates than the UK.

8. Share based payments

Sharesave Scheme

Share options are granted at an option price equal to 80 per cent. of the Company share price at the grant date. The share options vest and are exercisable either three or five years after the date of grant, and they expire six months after the end of the vesting period. The options will also expire if the employee leaves the Group prior to the exercise or vesting date.

The terms and conditions of the SAYE grants made during the 28 weeks ended 10 August 2013 are as follows:

The basis of measuring fair value is consistent with that disclosed in the consolidated financial statements for the 52 weeks ended 26 January 2013. The range of inputs into the Black-Scholes model was as follows:

Long Term Incentive Plan

Share awards are made in the form of nil-cost options under the Long Term Incentive Plan 2013 ("LTIP 2013"), which was approved by the shareholders at the general meeting held on 20 June 2013. The options will be exercisable three years after the date of grant subject to the satisfaction of profit before tax per share and share price performance targets, each measured over a three year period.The profit before tax per share target is calibrated so that the percentage of awards that vestsis linked to the level of profit growth achieved.

The terms and conditions of the LTIP 2013 grants made during the 28 weeks ended 10 August 2013 are as follows:

The charge to the income statement for the 28 weeks ended 10 August 2013 for LTIP 2013 awards amounted to £96,561 (2012: £nil). Included in the charge for the period is an amount in respect of R S Kelvin, who is employed by the Company, amounting to £14,077 (2012: £nil).

The Monte-Carlo valuation methodology has been used as the basis of measuring fair value of the LTIP 2013. The range of inputs into the Monte-Carlo model was as follows:

Value Creation Plan

Awards of units were made under the Ted Baker 2009 Value Creation Plan ("2009 VCP"). Units had no value at grant but, subject to the satisfaction of earnings per share, share price and total shareholder return performance targets, converted and gave participants the right to be granted nil-cost options at the end of the performance period. All awards made in August 2009 under the 2009 VCP vested on 13 August 2012 following the achievement of all performance related vesting conditions. Those awards converted into nil-cost options exercisable in two tranches: 50 per cent. in October 2012 and 50 per cent. in October 2013 subject to the participants being employed by the Group at those dates.

No awards were made under the 2009 VCP in the 28 weeks ended 10 August 2013.

The charge to the income statement for the 28 weeks ended 10 August 2013 for 2009 VCP awards amounted to £nil (2012: £165,541). In respect of R S Kelvin, who is employed by the Company, there is no charge in the period (2012: £37,326).

9. Reconciliation of cash and cash equivalents per balance sheet to the cash flow statement