• FY total sales up 16.4%
  • Retail sales rise 15%
  • Group gross margin increases to 61%
Ted Baker booked sales growth despite "on-going external challenges"

Ted Baker booked sales growth despite "on-going external challenges"

UK lifestyle brand Ted Baker hailed another "good year of progress", driven by the strength and appeal of its brand and despite what it called on-going external challenges.

The UK-listed company today (23 March), posted a 5.27% increase in profit to GBP46.6m (US$58.3m) from GBP44.2m, while group revenue rose 16.4% to GBP531m, and retail sales by 15%. This was despite a backdrop of "on-going external challenges across our global markets," the company said.

Meanwhile, profit before tax increased by 4.4% to GBP61.3m, from GBP58.7m.

E-commerce sales increased by 35.1%, while average retail square footage rose by 8.5% over the period to 387,373 sq ft. UK and Europe retail sales grew 10.7% and US and Canada by 28.3%.

Wholesale sales were up 20.9%, reflecting a "good performance" from the UK wholesale business, where sales increased by 10.4%, and a "strong performance" from the North American wholesale business, where sales rose 48.8%.

Group gross margin increased to 61% from 59.9% as a result of improved full price sell-through in the company's retail channel and an improved mix of wholesale sales to trustee customers, as well as some foreign exchange benefits, it said.

Meanwhile, both retail and wholesale gross margins increased to 66.1% and 45.1%, respectively.

"I am pleased to report another good year of progress in Ted Baker's expansion as a global lifestyle brand," said CEO Ray Kelvin. "We have continued to trade well and develop despite a backdrop of on-going external challenges across our global markets. This success reflects the strength and appeal of the brand as well as the outstanding quality of our collections. Our spring/summer collections have been well received and we have a clear strategy for continued growth across both established and newer markets."

Ted Baker has 490 stores and concessions worldwide, comprising of 192 in the UK, 98 in Europe, 111 in the US and Canada, 80 in the Middle East, Africa and Asia and nine in Australasia. 

Fiona Paton, associate retail analyst at GlobalData, notes: "Ted Baker has started the 2017/18 financial year by launching its 360° virtual reality website alongside an interactive shop window for its Regent Street flagship. It may be a novelty for now but innovative advertising initiatives like this will ensure Ted Baker engages with shoppers, stays ahead in a crowded market, and appeals to a new, younger customer base."