UK lifestyle brand Ted Baker remains confident of meeting its expectations for the full year as a double-digit boost from its online business helped drive group revenue in the 13 weeks to the end of November.
In an interim trading update today (16 November), the UK-listed company posted a 7.3% increase in group revenue, while retail sales climbed 4.6% compared to the same period last year.
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E-commerce sales meanwhile, increased by 30.5% and represented 19.2% of total retail sales. Average retail square footage rose by 5.6% over the period to 404,864 sq ft and the group’s expansion continued with the opening of a new store in Oxford and further concessions in premium department stores in Canada, Germany and the UK.
Wholesale revenues for the period jumped 14.2%, reflecting what Ted Baker called “good performances” from both its and North American businesses. The group said it now anticipates low double-digit wholesale sales growth – in constant currency – for the full year.
Both retail and wholesale gross margins were in line with its expectations for the period.
“The business has continued to perform well and develop in line with our expectations, reflecting the strength of the Ted Baker brand and the quality of our collections,” said CEO Ray Kelvin. “The group’s continued growth in the period, despite challenging trading conditions across some of our global markets, has again been underpinned by our business model and the unwavering focus on product quality and design that are central to everything we do.”
Kelvin added that while the group’s full-year results will, as ever, be dependent on trading conditions over the important Christmas period, it remains confident of meeting its expectations for the full year and continuing to develop Ted Baker as a global lifestyle brand.
Results for the period from 12 November to 6 January are expected to be published in mid-January.
Charlotte Pearce, retail analyst at GlobalData, notes Ted Baker is well-placed to face the upcoming Black Friday and Christmas trading period with the premium brand appealing to those looking for occasionwear and outerwear.
“As a lifestyle brand, Ted Baker also attracts loyal customers looking for gifting items – particularly as it has focused on range diversification – but its broad price architecture within gifting enables it to appeal to a wider audience. However, Ted Baker faces tough comparatives this Christmas with a stellar performance over the peak period last year where retail sales grew 17.9% on the previous year,” Pearce adds.
