UK: Ted Baker FY growth encourages City
- FY pre-tax profit up 34.6%
- Group sales grow 26.5%
- UK & Europe sales climb 20.3%
Analysts say Ted Baker provides “an encouraging growth story in the face of an uncertain economic climate”
Ted Baker continues to provide an "encouraging growth story", analysts say, after the apparel lifestyle brand revealed a 35% increase in full-year earnings and sales growth in all its regions.
In the 12 months ended 25 January, profit before tax amounted to GBP39.8m (US$65.8m) from GBP28.9m a year earlier, in line with market estimates.
Group revenue was up 26.5% to GBP321.9m, while retail sales grew 24.6% to GBP259.1m, boosted by strong growth in the UK and Europe where revenues were up 20.3% to GBP198.6m.
In the US and Canada, retail sales increased 38.1% to GBP50.7m. E-commerce sales were up 55.7% to GBP23.2m.
Cantor Fitzgerald analyst Freddie George said over the last three years there has been an "unerring focus" on the integrity of the brand, on-going improvements to the ranges, and further strong momentum in womenswear, which now accounts for 54% of sales. "These positive drivers have, we believe, given the company the confidence to relax the company's ultra-cautious strategy."
Conlumino analyst Greg Bromley offered a similar view. He said Ted Baker provides "an encouraging growth story in the face of an uncertain economic climate".
"By positioning itself as a lifestyle brand rather than just a clothes retailer alone, it has managed to engage with and inspire consumers, encouraging spend on its products even with disposable incomes squeezed.
"It has achieved this through its consistent awareness and development of major fashion trends, while sticking to its roots as a fun, aspirational, British lifestyle brand.
"The coming months will likely see the retailer continue to improve its proposition in the UK, but the more exciting developments are surely set to be abroad, with Ted Baker's growth showing no sign of abating any time soon."
Ted Baker's share price was up 0.14% to 2,202 pence at 09:08 GMT this morning.
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