Retailer Ted Baker revenue up on online growth, new stores
today Jun 14, 2016
British clothing company Ted Baker said revenue for the 19 weeks to June 11 had risen by 11.3 percent, boosted by strong demand, online growth and new stores.
The group, which trades from 465 stores and concessions globally, said on Tuesday retail sales for the period grew 12.7 percent, with store space increasing 9.7 percent.
Wholesale sales rose 7.3 percent, while e-commerce sales jumped 32.3 percent.
Ted Baker, which opened its first store in Glasgow in 1988, said gross margins were in line with its expectations and that it was on track to meet its full-year expectations.
Liberum analysts wrote in a note that the company remains on track to meet full-year expectations of 12 percent-15 percent profit growth.
The analysts said Ted Baker is outperforming its peers both in stores and online, as well as through the wholesale channel.
Ted Baker's dresses, suits and shirts, often sporting quirky details such as flowery collars and polka-dotted sleeves, have helped it to stand out from rivals in Britain and, increasingly, overseas.
Next Plc, Britain's most successful clothing retailer over the past decade, warned in May that its sales could fall as much as 3.5 percent this year, hit by a cool spring and signs of a slowdown in consumer spending.
The downgrade was Next's third in five months and underlined the difficulties facing retailers including Marks & Spencer. Next had warned in March that this year could be its toughest since the financial crisis of 2008.
British shop sales edged up in May after a sharp fall in April, when cold weather turned shoppers away from new spring and summer clothes. Expectations for June, however, sagged as uncertainty about the European Union referendum unsettled retailers.
Ted Baker's shares were up 2.15 percent to 2,375 pence at 0707 GMT, outperforming a 0.45 percent decline in the FTSE 350 General Retailers Index.
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