Ted Baker's share price has dropped in morning trading despite the fashion house reporting impressive sales growth both in the UK and overseas.
Group revenue at Ted Baker rose 16.4 per cent in the year ending 28 January, up from £456.2m to £531.0m, and profit before tax grew four per cent, from £58.7m to £61.3m.
Retail sales increased 15 per cent to £400.7bn, with sales in the UK and Europe accounting for more than half (£279.5m) of the total, growing by 10.7 per cent over the year.
Store sales growth in the US and Canada was almost triple that, up by 28.3 per cent to £103.4m.
The company did not provide figures on its like-for-like sales growth, which is used as a measure for underlying trading. And investors were clearly not impressed; Ted Baker's share price was down five per cent at time of writing.
Why it's interesting
Ted Baker has performed consistently over the past year in a challenging trading environment, with UK consumers turning away from clothing, choosing instead to spend their money on other things, such as eating out.
Investors may well be worried about the cost pressures facing retail over the year ahead, with the fall in the value of the pound and national living wage costs set to impact margins.
What Ted Baker said
Ray Kelvin, Ted Baker chief executive, said: "We have continued to trade well and develop despite a backdrop of on-going external challenges across our global markets.
"This success reflects the strength and appeal of the brand as well as the outstanding quality of our collections."
What analysts said
Cantor Fitzgerald analyst Mark Photiades said: "We see significant global growth potential for Ted Baker led by an experienced and highly capable management team.
"Ted Baker is an iconic British brand gaining increasing traction with an international audience."