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'Strong progress' for Ted Baker as pre-tax profits swell by 20%

Ted Baker’s pre-tax profits leapt up 20.3% to £58.7m for the year to January 30, as group revenue rose 17.7% to £456.2m despite the “uncertain backdrop in some markets”.

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Profit before tax and exceptional items was up 18.6% to £58.7m.

The fashion and lifestyle brand’s retail sales were up 13.5% to £348.4m, while wholesale rocketed by 33.6% to £107.7m. In the UK and Europe, retail sales were up 8.9% to £252.5m, while in the US and Canada they were up 27.3% to £80.6m.

Womenswear sales were up 15.9% year on year, but menswear outperformed with 20.1% growth. 

Online sales increased by 45.8% to £53.5m following further investment in its platform. Ecommerce sales now represent 15.4% of total retail sales, up from 12% last year.

Licence income was up 23.3% to £14.4m, after its partners opened stores and concessions in Azerbaijan, Dubai, Kuwait, Mexico, Qatar, Saudi Arabia, Singapore, Taiwan and Thailand, and its joint venture in Australasia opened two outlet stores.

Other highlights of the year include Ted Baker’s agreement in December to lease a new warehouse facility in the UK, which will serve as its European distribution centre.

And in January, it purchased the freehold of its “Ugly Brown Building” head office in London for £58.25m using a new term loan facility.

Founder and chief executive Ray Kelvin said: “I am pleased to report another year of strong progress in Ted Baker’s continued development as a global lifestyle brand. We have again traded very well – despite an uncertain backdrop in some of our markets – which is testament to the strength of the Ted Baker brand as well as our unwavering focus on quality, design and attention to detail.

“We have further developed the brand’s presence across international markets including first store openings in Amsterdam, Azerbaijan, Hawaii, Mexico and Qatar, and we have new openings planned across our markets in the year ahead.

“The group is continuing to invest in its team and infrastructure to support Ted Baker’s stability and long-term growth. This includes the purchase of our iconic central London home at the Ugly Brown Building, as well as investment in a new, state-of-the-art European distribution centre in the UK.”

There were no exceptional costs in the period, compared with £5.3m in the previous period that related to a legal dispute with a former insurer.

On current trading, Ted Baker said it was pleased by the initial, positive reaction to the spring 16 collections, and that sales are in line with expectations. However, the exception was Asia, “where, as has been widely reported, the trading environment continues to be challenging”.

“While Asia currently represents a small part of our business at 3.4% of revenue, we remain positive about the long-term opportunities to develop the brand in this territory,” the brand said.

Ted Baker has 448 stores and concessions worldwide, comprising 185 in the UK, 93 in Europe, 97 in the US and Canada, 64 in the Middle East and Asia, and nine in Australasia.

 

 

Readers' comments (1)

  • Does George Osbourne know about Ray Kelvin! What a man and what a Company!
    USA have Trump we could have Kelvin!!

    Unsuitable or offensive? Report this comment

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