Member Article

Ted Baker expand overseas and increase sales

International expansion resulted in a profit loss for designer and retailer Ted Baker, as the cost of moving into new markets reached £65.9m.

New store openings in Tokyo and on Fifth Avenue in New York raised awareness of the brand in foreign countries, and retail sales rose by 53.3% in the U.S.

In the UK and Europe, sales rose by an encouraging 7.9%, and the company increased its square footage by 6.5% on average.

Pre-tax profits, however, fell 8.4% across the group from £8.5m to £7.8m, after a hit from operating cost increases of 17.4% .

Ted Baker’s chairman, Robert Breare, said he was pleased with a “robust performance despite a backdrop of challenging conditions.”

He also praised 10.4% rises in profit before tax and exceptional items, and commented that Ted Baker’s retail division was performing well across all markets.

Founder and chief executive, Ray Kelvin CBE, said: “ I am delighted with the openings, since the period end, of our first store in China in Beijing and our first concessions in Germany, as we continue to build Ted’s global presence.

“As ever, our full year results will be dependent on trading in the important second half and we remain understandably cautious at this stage given the uncertainty in the global economy. However, we believe that we are well placed to deal with the challenges ahead.”

The company has plans to open new concessions in a German department store, alongside further concessions in Europe.

A resilient performance in the first half of 2012 has led to a confident outlook for the retailer, and the store said it is “well placed to deal with the challenges and opportunities ahead.”

This was posted in Bdaily's Members' News section by Miranda Dobson .