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Strong profit growth for fashion retailers Ted Baker and Next

Fashion retailers Ted Baker and Next have revealed strong profit increases, with each company attributing different reasons for their success.

Profit before tax at Ted Baker jumped to £48.8m, an increase of 25%. Operating from 398 outlets worldwide outlets, the company disclosed that new store openings helped revenues soar up to £387.6m, an increase of 20.4%.

Next reported a 12.5% rise in underlying profit before tax to £782.2m in the 12 months to 31 January, attributed to sales growth in both stores and online.

Next enjoyed a 10.4% increase in profits at its retail store division on the back of a near-5% rise in sales, whilst Next Directory sales rose more than 12%.

Ray Kelvin, chief executive at Ted Baker, said: “This was another excellent year as we continued to develop Ted Baker as a leading lifestyle brand across global markets and distribution channels.

“We continue to invest in the brand as we develop in new markets where we see long term growth.

“All the while, we remain totally focused on the quality, design and attention to detail which underpins every area of the Group.

“Our customers’ reaction to our Spring/Summer collections across markets has been very encouraging and we are excited by our new store openings in the coming months, which include a first store devoted to showcasing our extended licence product range in Spitalfields, London”.

Lord Wolfson, chief executive of Next, said: “Whilst we are happy with most of our current product ranges, we recognise that some collections are not as strong as they were at this point last year.

“In addition, during the Spring and Summer seasons, we face very tough comparative numbers from last year, when sales were assisted by unusually warm weather.

“There is a potential upside in the second half as the comparative performance last year weakens, particularly in the third quarter”.