Ted Baker today said it would continue to invest both at home and abroad, online and offline as it looks towards further growth following a first half in which online sales grew by almost 30% and pre-tax profits by 20.5%. Both figures were higher as a result of the devalution of sterling following the EU referendum result, the company said today.
The update came as the fashion and lifestyle retailer, a Top150 company in IRUK Top500 research, reported group revenue of £259.5m in the 28 weeks to August 13, 14.4% up on the same period last year. Retail sales, including ecommerce, grew by 13.6% – or 9.6% in constant currency – taken separately, ecommerce sales grew by 29.7%, or 28% in constant currency. The figures reflect the weakening of sterling following the EU referendum, and the retailer also said it had made a net foreign exchange gain of £1.2m during the period – compared to a loss of £0.7m last time. Pre-tax profits of £21.5m were 20.5% ahead of last time, partly helped by that exchange boost.
The retailer said the growth in sales came as a result of investment both in stores and online. “We have continued to develop our retail proposition with continued investment in each of our ecommerce sites, aiming to provide a more relevant customer experience through improved design, performance and personalised content,” said non-executive chairman David Bernstein in today’s report to investors. “We also launched our first language specific site in Germany and have been very pleased with its performance.
The brand also plans offline expansion: it is set to open two new stores in the US and one each in Canada and China. It will open a new concession in Canada as well as within department stores in the UK, Europe and Asia.
Chief executive and founder Ray Kelvin said: “Ted Baker continues to perform well across all distribution channels despite challenging trading conditions across our 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.
“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.”
