London-based fashion retailer Ted Baker has registered strong first-half results after growing its online and overseas business.
The designer clothing brand raised its interim dividend by 13.5 per cent, although it said it retained a cautious outlook on the second half of its financial year, taking into account the uncertain macroeconomic environment.
Ted Baker started as a menswear label in Glasgow in 1987, but has since gone on to establish operations elsewhere in the UK, as well as in continental Europe, the US, the Middle east and Asia.
The company said: “Whilst we have made a good start to the financial year, our results for the full year will be dependent on trading in the second half of the financial year and, at this stage, we remain cautious given the uncertain macroeconomic environment. Our costs and commitments remain under control and, with our strong balance sheet, we will continue to invest in the long term development of the Ted Baker brand.”
Consumers are cutting back on spending due to the uncertain economy, leaving Britain’s retailers facing a number of challenges in the run up to the Christmas sales period.
Pre-tax profits for the 28 weeks to August 13 increased to £8.5m at Ted Baker, up from the £7.5m recorded last year. Revenue went up 17 per cent to hit £102.8m.
Shares in the company on the London Stock Exchange closed at 688p on Wednesday, leaving the company with an overall value of approximately £300m. Ted Baker’s shares have lost about 10 per cent of their value in the last three months.
Ted Baker founder and chief executive Ray Kelvin said: “Ted Baker has delivered a strong performance during the first half of 2011 reflecting the continued investment in our brand and the strength and passion of our team.
“Our Autumn/Winter collections have been positively received and we look forward to opening our first stores in Tokyo and in Beijing early next year. We are also excited to announce that we have signed a lease for a store on the internationally renowned Fifth Avenue, New York to be opened in the middle of next year.
“As in previous years, results for the full year will be dependent on trading in the important second half and, at this stage, we remain understandably cautious given the uncertain economic environment, although believe that we are well placed to deal with the challenges ahead.”