Fashion retailer Ted Baker celebrated yet more double-digit sales growth today as it met investors at its annual general meeting.
For the 19 week period ending 10 June, Ted Baker's sales jumped 14.2 per cent as compared to the same period in the year before. The figures come after its full-year results in March, when Ted Baker reported a 16.4 per cent jump in revenue.
The middle-market retailer's online sales soared 35.9 per cent, and wholesale sales were up 13.8 per cent.
At the time of writing, Ted Baker's share price was up 2.8 per cent at 2,492p.
Why it's interesting
Ted Baker has been putting in a solid performance despite the increasingly tough external conditions faced by fashion retailers. Consumers' incomes are being squeezed due to inflationary pressures, and high street sales are falling.
And clothing sales have been hit particularly hard. Middle-market fashion is a highly competitive marketplace, and some analysts have argued that the market is oversupplied. Jaeger collapsed into administration earlier this year, demonstrating the distress this section of the retail industry is under.
George Salmon, equity analyst at Hargreaves Lansdown, said Ted Baker's controlled store expansion had "translated into some lucrative results for shareholders".
"While it's always tempting for retailers who have found a popular niche in the market to cash in by opening stores left, right and centre, Ted is more than aware of the dangers of smothering its customers with too much of a good thing," Salmon said.
"The group opens up a smattering of new stores in attractive locations every year, and so retains a firm grip on its image, which remains quirky and fresh."
What Ted Baker said
Ray Kelvin, founder and chief executive of Ted Baker, said: "This continued good performance across all of our distribution channels is a reflection of the strength and appeal of Ted Baker as a global lifestyle brand.
"We are very pleased with the customer response during the period and, despite an uncertain macro environment, we remain positioned to deliver further progress and our expectations for the full year."