Ted Baker revenues impress again, expects slight dip in H2 margins

Ted Baker on Thursday delivered another strong set of trading figures for the 13 weeks to November 8, although the UK-based fashion retailer warned H2 gross margins will be just below last year on a shift in the mix of sales. It also said reaction to its autumn/winter collections across international markets has been “very encouraging”. Total revenues for the quarter jumped 15.7% with retail sales for the period up 12.7%, or up 14.7% currency neutral. Retail sales generate over 80% of group revenue.

Wholesale sales jumped 24.7% with the US business trading “particularly” well as the brand continues to gain traction, noted Ted Baker.

E-commerce sales sped ahead increasing 34.6% on-year, “reflecting continuing growth in the UK and the successful migration of our US site to the new platform in July.”

With average retail square footage up 9.5% on last year, the retailer continued to expand internationally with store openings in Las Vegas and Toronto, plus further concessions in department stores in the US, the Netherlands, France, Spain, Portugal and South Korea.

It noted product and territorial licensees “continue to perform well”, with successful licensed store openings in the period including another store in Turkey and the brand’s launch into Latin America with its first store in Panama. Further store openings planned for the coming months include Miami and Heathrow Terminal 4, and a further outlet store in China.

“The Ted Baker brand continues to perform well across all channels and in line with the board’s expectations,” it said in a trading statement. “However, as ever, the full year outcome will be dependent on trading during the important Christmas period.”

It added: “We expect gross margins for the second half as a whole to be slightly below last year, largely due to a change in the mix of sales as seen in the first half.”

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