Retail market may be slowing down for others, but for Ted Baker it can’t be better. The fashion chain has reported a 12.5 percent increase in pre-tax profits amounting to £6.3 million in the first half of the year in spite of tough trading conditions.
This has pleased the chief executive, Ray Kelvin who said, "We are pleased to report strong first-half results despite a tough UK retail environment". He also said that the increase in both turnover and profits highlights the appeal of the brand. As of August 13, the group revenues were up 16.8 percent to £57.2 million in the last six months. The main stimulator was the sales of the menswear ranges, which were up 22.5 percent and representing 56.3 percent of turnover as compared to 53.8 percent last year. Womenswear too saw an increase in their sales up 15.4 percent, which accounts for about 38.1 percent of sales.
The company also said that its expansion plans in the US were progressing well. It had successfully launched the Best in Show store in Los Angeles in June saying that it was "quintessentially British". It also announced that it had signed its first agreement in Asia, which will give the brand a hook in the Hong Kong, Macau, China, Taiwan and South Korea markets.
Despite good performance in the first half of the year, the company is cautious with Ray Kelvin saying that the company is not immune to the slowdown in the market. "We are very encouraged by the positive reaction from our customers to the autumn/winter collections, although we have not been immune to the recent slowdown in the UK retail market", he said. "Christmas may be the period of time which will decide the overall performance of the company", he added.
Despite this cautious approach, retail sales in the seven weeks to October 1 were 4.7 percent higher than at the same time last year.
Posted
on : Sat, 08 Oct 2005 15:35 GMT | Business News
By : Pippa Fielding
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