Ted Baker profits boosted by international expansion
Ted Baker has reported a 19.2% increase in its full-year pre-tax profit to £28.9 million as the fashion retailer continued its international expansion.
In the year ending 26 January 2013, revenue was up 18% to £254.5 million while profit before tax and exceptional costs rose 16.5% to reach £31.5 million.
Ted Baker said its retail division had performed strongly, delivering a 19.4% increase in sales to £208 million. While retail sales in the UK and Europe rose 11.1% to £165.1 million, retail sales in the US and Canada surged 68.3% to £36.7 million.
Commenting on the results, founder and chief executive Ray Kelvin said: "I am pleased to report another strong performance in what has been a very exciting year for the Ted Baker brand. This strong performance has been achieved despite a challenging and competitive trading environment and is testament to the strength of the brand, our collections and our people.
"I would like to take this opportunity to thank the entire team for their hard work and Tedication during the year as we continue to build the Ted Baker brand on the world stage."
Wholesale sales for the group increased by 12.2% to £46.5 million. This reflected continued growth in the retailer’s US wholesale business and a strong performance from the UK.
Ted Baker said the new financial year had started well particularly in the UK, where two new stores will open at Gatwick Airport’s North and South terminals during the year.
There are also plans to launch a new e-commerce platform in the second half of the year to support growth in the UK and overseas. This will include local language sites as well localised and personalised content based on customers’ browsing and shopping behaviours.
The retailer will open its first outlet store in Belgium in July and is looking to open further concessions in Germany, Spain, France and the Netherlands.
In the US, a further eight concessions will be opened during the year as well as a first outlet store in Toronto in Canada.
In Asia, the company has recently opened a second store in Shanghai in China and a further concession through a leading department store in Tokyo. A third store in Shanghai will open later this year together with the retailer’s first outlet store in the city.
Licence income from territorial and product licences increased by 11.5% to £7.5 million.
David Bernstein, non-executive chairman, said: "We have continued to deliver a good performance in an uncertain trading environment and, through maintaining our focus on the long term development of the brand, we believe that we are well placed to deal with the challenges and opportunities ahead.
"We will continue to develop our retail, wholesale and licensing distribution strategy across new and existing markets."
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