Expanding despite ‘challenging’ markets
British fashion brand Ted Baker has recorded big jump in first-half profit and revenue today as it announced that it is on track to meet its expectations for the full year.
The premium fashion brand has reported a 12.7 per cent increase in profit before tax to £24.2m in the 28 weeks to 12 August, compared to the same period a year ago.The group revenue increased to £295.7m, up 14% on a reported basis or 9.5% in constant currency, the report states.
UK retailers have taken a hit by weak consumer spending as a weaker pound drives up inflation. Despite such ‘challenging’ conditions in the home market, the fashion brand continues to grow in the UK, Asia and Europe.
Talking about their growth strategy, Ray Kelvin, Ted Baker founder and chief executive, said: “The Ted Baker brand has continued to perform well and in line with our expectations across all distribution channels. This good performance reflects the strength and appeal of the Ted Baker brand our business model and the passion, creativity and innovation of our global teams.”
“Whilst trading conditions in some of our markets remain challenging, we are confident of making further progress for the full year, in line with our expectations,” Kelvin added.
Media reports suggest that Ted Baker has been expanding internationally with its recent licensee openings in Australia, Dubai, Kuwait, Lebanon, Mexico, Qatar, Saudi Arabia and Turkey. The group also plans to open new stores in Oxford and London Luton Airport, along with Germany and Spain, later this year.
The fashion brand has also recorded a 14 per cent increase in interim sales as it continues to expand internationally.