Ted Baker is Christmas winner as new global stores and e-tail drive sales

Ted Baker was one of the winners over the recent Holiday season with the UK-based fashion chain on Wednesday saying sales rose 17.9% over the eight weeks to January 7.

That may have translated into a lower 10.6% rise at constant exchange rates, but anything in double-digits is impressive given the woes suffered by other usually-strong-performers such as Next in the past few months.

Ted Baker performed strongly in the latest period

Ted Baker, which has stores all around the world, said the good performance was achieved “despite a backdrop of on-going external factors continuing to impact trading across our markets.”

But those issues certainly didn’t dent e-tail sales as the firm’s e-commerce operations saw a 35% sales surge (31% at constant exchange rates).

The company gave few other details but said that gross margins were in line with its expectations and it expects to end the year with a clean stock position.

Ted Baker has benefitted from its global expansion strategy

While it did not give a comparable sales figure, it is clear that the overall sales growth was partly driven by new store openings. Ted Baker saw a rise in average square footage of 8.5% over the period. This included further concession openings in China and, with its licence partners, its first store in Bahrain and an additional store in Indonesia.
Just how all this affected profits will become clearer by March with the firm set to report full-year results on March 23. For now, it simply said that “results will be in line” with its expectations.

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