Ted Baker bucks high street slump as store sees sales soar more than 20% year on year
16:30 GMT, 15 November 2012
Fashion label Ted Baker brightened a gloomy retail picture today by revealing its sales were up by more than a fifth on a year earlier.
The designer brand said it was particularly pleased with its UK performance, but also credited the 22% sales surge in the 13 weeks to November 10 on shop openings in department stores in mainland Europe and further afield.
The sales boost at Ted Baker, which has 180 shops in the UK including concessions, is in contrast to the general gloom on the UK high street after the Office of National Statistics said sales volumes dropped 0.8% last month as consumers tightened their belts.
Bucking the trend: Despite other high street stores posting depressing sales figures, Ted Baker has brightened the gloom by revealing sales are up by more than a fifth year on year
Ted Baker said its e-commerce business had continued to perform well, while there was also a 14.2% increase in sales from its wholesale business, which supplies Ted Baker products to other shops.
Jean Roche, analyst at Panmure Gordon, said the strengthening of Ted Baker's core UK business with the brand's international potential was a “killer combination”.
In the last quarter the group opened concessions in the US, Netherlands, Ireland, Spain and Germany, increasing its global footprint by 13.7% on a year earlier to 270,000 sq ft in the 13 weeks to November 10.
Ted Baker's sales have soared thanks to strong core UK business – but
the CEO says festive season spending will be the real test
But it said its expansion plan at renowned New York department store Bloomingdales was disrupted when Hurricane Sandy hit the US east coast.
The retailer also plans to open its first shop in Toronto in Canada and further shops in Shanghai in the coming months.
Ray Kelvin, founder and chief executive of Ted Baker, said he was “very encouraged” by the reaction to the brands and collections in new markets, but warned the group's full year results would be dependent on trading over the key Christmas period.