Ted Baker says it is pleased with what it calls a "good performance" for H1 2016/17, despite challenging external trading conditions, as the lifestyle brand revealed an increase in half-year sales and profits. 

The UK-listed company today (11 October) posted a 14.4% increase in group revenue for the first 28 weeks of its financial year, while profit increased by 24% to GBP16.3m (US$20m) from GBP13.1m.

For the period to 13 August from 30 January, the company's retail channel saw sales including e-commerce up 13.6% to GBP191.1m – or by 9.6% in constant-currency terms – boosted by an almost 30% increase in North American retail sales, while average retail square footage rose by 9.7%.

Meanwhile, profit before tax increased by 20.5% to GBP21.5m from GBP17.8m, with GBP1.2m of the increase coming from foreign exchange gains.

In its interim results, Ted Baker said the performance was achieved across all channels and was helped by the group's geographical expansion. It pointed to store openings in Canada, China and the US, as well as the addition of department store concessions in the UK, Europe and Asia, plus licensee store openings in newer territories South Africa and Vietnam.

The company's e-commerce business has continued to perform well with sales increasing 29.7% to GBP29.7m, boosted by an investment in design, personalised content and language-specific websites, the first of which launched in Germany during H1.

"Our continued growth and development reflects the strength of the Ted Baker brand, our business model and the skill, innovation and passion of our global teams," said chief executive Ray Kelvin. "We remain firmly focused on the long-term development of the Ted Baker brand and are continuing to invest in our infrastructure and people to support the future growth of our business in both new and existing markets.'

Sarah Johns, analyst at Verdict Retail, noted Ted Baker's performance was boosted by the brand's premium design aesthetic and almost aspirational appeal which continues to attract shoppers.

"Products are recognisably and distinctively Ted Baker, making them highly desirable to its loyal customer following," she added. "Ted Baker also has an advantage over rivals such as Reiss and Whistles, in terms of its ability to appeal to women and men fairly equally across a variety of products as evidenced by growth across both womenswear (up 13.8% to GBP148.9m) and menswear (up 15.3% to GBP110.6m).

"Ted Baker's products are typically smart, design-led and chic, and with Christmas coming up – will be top of mind for customers for partywear, occasions and gifting. As the retailer continues to invest in product and build brand awareness of its core offer in new and emerging markets, Ted Baker is well-positioned to continue on its upward trajectory over H2 2016/17."

Despite the challenging conditions, the company said it is confident of making further progress for the full year and intends to make its next trading update, covering the period since the start of the second half of the financial year, in mid-November.