Ted Baker's international expansion continues with profits and revenues increased

 
Alys Key
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Ted Baker has looked overseas for growth in its fashion business (Source: Ted Baker)

British fashion and lifestyle brand Ted Baker grew its profits in line with expectations in the 28 weeks to 12 August.

The figures

Group revenue was up 14 per cent to £295.7m, and profit before tax rose 12.7 per cent to £24.2m.

Ted Baker announced an interim dividend of 16.6p, an increase of 12.2 per cent on the previous year.

Shares were subdued today, rising 0.36 per cent to 2,830p after jumping yesterday in anticipation of a positive set of results.

Read more: Ted Baker is expected to unveil more double-digit growth this week

Why it's interesting

The iconic British brand has built up its international presence through stores overseas as well as licencing agreements and concessions, meaning much of its revenue comes from the US and Asia. This has given the company a boost due to the weaker pound.

Today's results showed slower growth in North America for retail, but the strength of other channels including wholesale offset this.

Read more: Ted Baker has bagged a startup founder and a retail expert for its board

Analysts said that in the UK, "there is no doubting the continued strength of the brand against a tougher market backdrop".

Its diverse revenue streams mean Ted Baker has defied some of the gloom overhanging British retail as price rises cause unease in the industry.

What Ted Baker said

Founder and chief executive Ray Kelvin told City A.M. that the company would prepare for any Brexit outcome. But he added that he hoped there would be an option for free trade to continue.

"I'd rather keep trade open," he said. "I remember before we were members, there was problems getting products into the country and all sorts. I would rather not go back to that."

However he struck a confident tone on Ted Baker's global popularity, saying "there's no substitute to Ted Baker."

Read more: Floats in fashion: Maje and Sandro owner SMCP plans a €2.2bn IPO in Paris

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