Ted Baker profits surge 20% in challenging market

Ted Baker has defied challenging market conditions to post a 20.5% increase in pre-tax profits to £21.5m in the 28 weeks ending 13 August 2016, which was slightly ahead of analysts' expectations.

The premium fashion and lifestyle brand also posted sales up 14.4% at £259.5m with strong growth reported in key global territories. Retail sales in North America were up 28.7% at £51.1m while Asia retail sales were up 15.8% to £8.8m. The UK and Europe were up 8.5% at £131.2m.

It will continue to open new stores overseas with two new stores planned for the US and one each in China and Canada, which will also be home to a new outlet store. Licensee store openings are planned for Azerbaijan, Egypt, Mexico, South Africa, Taiwan and Vietnam, and there will be new concessions in department stores across the UK, Europe and Asia.

Its online store at Tedbaker.com also achieved strong growth with sales up £29.7% while wholesale turned in growth of 16.7% to £68.4m. Licensing brought in revenue of £7.9m, up 23.2%.

CEO Ray Kelvin said the business continued to perform well despite challenging trading conditions across its markets. "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," Kelvin said.

"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," he added.

Ted Baker has 470 stores, concessions and outlets worldwide comprising: 186 in the UK; 97 in continental Europe; 106 in North America; 72 in the Middle East, Asia and Africa; and 9 in Australasia. It was founded by Kelvin in 1988.