Ted Baker retail sales rise but wholesale slumps

Gross margins were in line with expectations, it said. Retail sales jumped 13.3 per cent during the period on an average retail square footage increase of 17.1 per cent to 180,195 sq ft.

The fashion retailer said it had been affected by unseasonably warm weather, compared with a cold snap last year, and increased economic uncertainty during the period.

In the 13 weeks, Ted Baker opened stores in Cabot Circus, Bristol, Liverpool One’s second phase and two stores in Westfield London. At Westfield London, it launched its Pashion store, which is located in the luxury village and showcases its affordable luxury designer collections.

Wholesale sales slumped 21 per cent during the period, due to the later phasing of Ted Baker’s deliveries and the difficult trading conditions facing its customers.

The retailer previously outlined that full-year wholesale sales are expected to fall below levels recorded in 2007. However, Ted Baker said that it expects the second-half decline in wholesale sales to be more closely in line with those recorded in the first half of the year, which were down 12.1 per cent.

Ted Baker said that its product and territorial licences continue to trade in line with expectations, the brand is well positioned and the autumn/winter collections have been well received.

However, it remains cautious about trading for the rest of the year. Founder and chief executive Ray Kelvin said: “We remain mindful of the current economic uncertainty and will continue to manage our business carefully. We believe that the strength of the Ted Baker brand combined with our robust multichannel international distribution means we are well positioned to deal with the challenges ahead.”