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Sales up at Ted Baker despite tough conditions

Group revenue at Ted Baker increased by 7.3% in the 13 weeks to 11 November, despite “challenging conditions” on the high street.

Retail sales were up 4.6%. Ecommerce sales jumped 30.5% year on year and now represent 19.2% of total sales.

Wholesale sales were up 14.2% for the period, reflecting good performances in the UK and US. The company expects low double-digit wholesale growth for the full year.

The retailer said during the quarter average retail square footage increased by 5.6% to 404,864 sq ft. A new Ted Baker store opened at Westgate Oxford, and concessions were added in Canada and the UK. An outlet store opened in Chicago and the chain’s unit in Bicester Village was relocated.

Further licensed stores opened in Kuwait and Qatar.

Ray Kelvin, founder and CEO, told Drapers that the business has benefited from its investment in logistics, having recently opened a new distribution centre in Derby.

Kelvin said: “Consistency, focus and energy were the key ingredients to our performance. We’re focused on making our product better every day, [and] we have a shiny new warehouse and systems in place to ensure stock is in the right place at the right time.”

He also confirmed proposals for a new HQ that if approved, is “at least five years away” from launching. It emerged the business submitted the planning application to Camden Town Hall at the start of this month.

The move would see its 49,220 sq ft “Ugly Brown Building” offices removed and replaced by a 95,000 sq ft headquarters at the same site.

Kelvin said: “We need more exciting space – we’re going to be creating new areas and making it better. We want to be as iconic as we possibly can, and [put in place] a whole new creative hub.”

He added that despite challenging trading conditions, he remains “confident” that the business will continue its positive momentum throughout the festive trading period.

Kelvin said the fact that the business “doesn’t have a large amount of shops” in the UK has helped keep control of costs, while its licensing partnership model has helped keep the business “pliable”.

The brand operates 32 UK shops, including those at airports and travel hubs.

 

 

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