Oct 4, 2012
Reading time
2 minutes
Download the article
Click here to print
Text size
aA+ aA-

Ted Baker sales boosted by international expansion

Oct 4, 2012

LONDON - British designer clothing brand Ted Baker (TED.L) reported a 15 percent rise in first-half revenue, helped by strong sales in the United States as it seeks to grow out of a sluggish European market.

Ted Baker store in Beijing / Foto: Beijing

Many European retailers have struggled as household budgets have been squeezed by inflation, muted wages growth and government austerity, but Ted Baker has notched up solid growth by tapping fast-growing demand in the U.S. and Asia, recently opening new stores in New York, Tokyo and Beijing.

The company, which started as a menswear brand in Glasgow in 1987 and now has nearly 300 stores and concessions worldwide, said on Thursday U.S. retail sales were up 53 percent to $25.6 million, on total revenue of 118.6 million pounds .

In August, the high-end High Street designer, known for its classic cuts with quirky details, opened an Art Deco-themed flagship on New York's Fifth Avenue.

"We expect it to perform really well and to present the brand on what is a fantastic showcase for the U.S. and for the world," Finance Director Lindsay Page told Reuters, noting that the U.S. was now Ted Baker's biggest market outside the UK.

A quarter of Ted Baker's sales came from overseas, up from 20 percent a year ago, Page said. Online sales jumped 82 percent and made for roughly 5 percent of total sales.

Sales in the UK and the rest of Europe rose 7.9 percent.

Profit before tax rose 10.4 percent to 9.4 million pounds, excluding a one-off cost of 1.6 million pounds relating to the opening of two of the new stores.

In a statement, the company said its outlook remained cautious given the uncertainty in the global economy. It stressed that full-year results would depend on trading in the second half, which includes the Christmas holiday season.

Ted Baker plans to open a new store in Shanghai by the end of the year and one in Toronto next month.

"The pipeline for new stores is healthy, the balance sheet is strong and the track record for controlled growth is formidable. Ted remains one of our top picks in the sector," Espirito Santo said in a note.

It noted, however, that it saw risks on the upside, "as Ted starts to leverage the investment it has made in international growth over the next couple of years".

Shares in Ted Baker, which have risen around 40 percent since the beginning of the year, were up 2.5 percent to 947 pence at 0753 GMT, outperforming the FTSE 250 midcap index .FTMC, up 0.27 percent.

(Editing by Rosalba O'Brien)

© Thomson Reuters 2022 All rights reserved.