Ted Baker saw retail sales climb 15.5% for the 52 weeks ended January 26, helping group profit before tax rise 10% to £22.1 million.
Total group sales were up 13.2% to £142.2m over the year and wholesale sales rose by 7.5%, ahead of company expectations.
However Ted Baker said that difficult market conditions had affected some of its wholesale customers and that 2008/2009’s wholesale performance would be below this year. Order books were down 21.6% for the seven weeks from January 26. This was partly because of phasing of deliveries but Ted Baker continues to cut back accounts it deems inappropriate for its brand.
Separately, license income at the fashion brand rose sharply by 32.5%.
Chief executive Ray Kelvin said: “The reaction to our Spring Summer 2008 collection has been encouraging with retail sales ahead 16.1% on the same period last year.”
He added: “We believe that the strength of our brand and our robust business model mean we are well placed to navigate the current uncertain economic outlook. At this early stage, we look forward to another year of growth and development of the Ted Baker brand.”
Ted Baker plans to open seven stores this year, adding 30,000sq ft of retail space. New stores include Heathrow Terminal 5, Cheapside in the City of London, Belfast, Cambridge, Bristol and White City, London. It will also open a second womenswear standalone in South Molton Street, London.