Ted Baker profits up despite 'challenging' market

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Ted Baker has reported an increase in its interim profits and sales despite what boss Ray Kelvin said were “challenging external trading conditions”.

The fashion retailer reported a 3.5% increase in profit before tax and exceptional items to £25m in the 28 weeks to August 11, spurred by a 3.5% boost in group revenue to £306m.

Overall, the retailer’s pre-tax profit declined 3.2% to £24.5m.

Ted Baker’s UK and Europe sales rose 1% to £147m during the period, while its sales across North America and the rest of the world both increased 1.8% to £61.8m and £11.2m respectively.

The fashion retailer’s online sales surged 24% to £53m.

The retailer opened two new stores in the UK during the period alongside a new store in Spain and new outlets in Germany and France.

Ted Baker’s wholesale division recorded a sales increase of 10% to £85.9m.

Founder and chief executive Ray Kelvin said: “Ted Baker has continued to develop and expand as a global lifestyle brand across its markets and distribution channels despite challenging external trading conditions.

“While we believe that the second half of the year will remain challenging due to external factors, we are well positioned to continue Ted Baker’s long-term development.

“Our flexible business model ensures that our customer has multiple channels to engage with Ted Baker and our global ecommerce business continues to expand, supported by our digital marketing strategy and unique stores that showcase the brand.”