British fashion brand Ted Baker is expected to unveil double-digit pre-tax profit growth in its interim results on Tuesday, as it increases online and international sales.
Analysts at Liberum expect pre-tax profit of about £24m for the six months to the end of July, while broker Stifel set the expected level at £24.3m. This would represent growth of about 12 per cent in the company's bottom line.
"Ted's brand strength underpins its global appeal and positions it well both in the UK and internationally for long-term market share gains," said Adam Tomlinson, an analyst at Liberum.
The first half of the year is typically weaker at Ted Baker, with roughly a 30/70 split, meaning analysts are expecting full-year profits to top £73m.
The British brand now draws in approximately 40 per cent of its business overseas, an area which analysts say is primed for further growth.
Stifel analysts said that annual sales growth of as much as 15 per cent could be even faster if the group leverages overseas market growth onto fixed central costs.
"Ted Baker ticks all the boxes," said analysts at Exane BNP Paribas. "A brand which has offered stable, consistent growth for nearly 30 years, through careful distribution without overreliance on overt branding.
"Evidence suggests Ted Baker is becoming more desirable. 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."
Analysts also said that the slide in Ted Baker's share price over recent years was an overreaction to general gloom in the retail sector.