145 views

Ted Baker's on track for a boost in pre-tax profits

Rebecca Smith
Expanding its e-commerce offerings has paid off
Expanding its e-commerce offerings has paid off (Source: Getty)

Brexit blues aren’t expected to hit Ted Baker’s stride anytime soon. The retailer is forecast to post six-month profits in the realms of £19m-£21m – up on £17m for the same time last year.

Analysts at Exane BNP Paribas describe it as a brand with “growing desirability”, noting it has delivered stable, consistent growth for nearly 30 years. Full-year PBT is expected to come in at £65.9m, a 12 per cent year-on-year increase.

And uncertainty stirred up by the Brexit vote wasn't much cause for concern. "Proven internationally and competing in the attractive and less crowded accessible luxury space, we believe Ted looks well set to capture the global opportunity and deliver superior returns," the analysts said.

Since floating in 1997, Ted Baker has expanded outside Britain and now has 448 stores across the globe, generating over 40 per cent of its sales overseas.

Read more: Ted Baker's online strategy is paying off

Exane BNP Paribas analysts predict sales in North America to continue to grow – more than doubling in the next five years to £185m. Sales growth in Britain will be considerably slower.

In June, the retailer recorded impressive revenue growth after focusing on expanding its e-commerce – with online sales up 32.3 per cent and the launch of its first language-specific website in Germany.

Founder Ray Kelvin is well-known for being reticent about taking the spotlight and refuses to have his full face printed in the media.

In a recent interview with Marketing Week, he said: "I don't like it when I see CEOs out there in the public eye. It smells of money. I don't want to think about how much someone owns and how much they make - it is ugly and the public don't like it."

"I don't sell shares. I am not interested in boats, planes or trains. I am a design man. It is all about the clothes."

Read more: Will more shareholders say no to executive pay?

Related articles