Ted Baker sales soar, e-commerce grows even faster
today Nov 17, 2016
The backdrop may be challenging but Ted Baker had a good quarter in the 13 weeks to November 12. The UK-based fashion and lifestyle retailer said Thursday that its group revenue rose a healthy 14% in the period, ahead of the growth rate for the first half.
Retail sales were ahead by 15.4% on a reported basis and even on a constant currency basis, revenues still managed to rise 6.7% “despite on-going external factors continuing to impact trading across [its] markets.”
Ted Baker did not give a like-for-like sales figure, however.
The affordable luxury retailer recorded surging e-commerce sales that rose 30.3% in total, or 25.9% in constant currencies. E-tail now represents 15.6% of total sales at the group, it said.
The company increased its retail space by 8.8% during the period, suggesting much of its sales growth came from new space and those rising e-sales. Ted Baker continued its international expansion with openings in Atlanta, Miami and Calgary, and further concession openings in department stores in China, Germany, Japan and Spain. It also relocated its New York Soho store and one of its Hong Kong locations.
But retail is not the only focus. Wholesale turnover for the period increased 13.2% (or 6.7% in constant currencies) reflecting good performances from both its UK and North American businesses. As previously indicated, the group now expects low double-digit wholesale growth (in constant currencies) for the full year.
The retailer also said its product and territorial licensees continue to perform well with licensed store openings in Dubai, South Africa and Mexico.
CEO Ray Kelvin said the reaction to its newer collections has been “very encouraging."
However, full-year results will be dependent on trading conditions over the important Christmas period.
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