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By
Reuters
Published
Jan 13, 2016
Reading time
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Ted Baker's offbeat style boosts Christmas sales

By
Reuters
Published
Jan 13, 2016

British clothing company Ted Baker Plc reported strong Christmas sales as its offbeat designs helped to overcome an unusually mild winter that has weighed on other British fashion brands.

The company's shares rose more than 7 percent on Wednesday morning to rank among the top gainers on the FTSE-250 midcap index.


Some of Britain's hottest November and December temperatures hit demand for winter clothing. As customers refrained from buying warm clothes, retailers such as Next Plc and Marks and Spencer Group have reported disappointing sales.

Finance Director Charles Anderson said the company's distinctive brand helped it to offset weak demand.

"It's not a coat that they buy because they want to keep warm," Anderson told Reuters. "They see it as an investment."

Ted Baker's clothing incorporates bright floral patterns, animal designs and polka dots, which analysts say help it stand out from its rivals.

"You wouldn't go past a Next and say 'Wow, that's fantastic', but you would go past a Ted Baker and say 'That is really exciting.' And that's a big part of their appeal," Liberum analyst Tom Gadsby said.

Ted Baker reported a 10.1 percent increase in retail sales in the eight weeks to Jan. 9.

The company said it had "no significant promotional activity" before Christmas, in contrast to many of its peers that discount heavily in the holiday period.

"The company's affordable luxury positioning with its quirky sense of style has helped to insulate it against the discounting and lackluster demand that has affected many other apparel retailers," said Neil Saunders from retail consultant Conlumino.

It also said its results for the full year would be in line with its expectations.

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