Ted Baker boosts sales against a “tough trading backdrop”
Ted Baker's share price climbed 2.79 per cent this morning after the luxury brand reported an 18 per cent jump in sales over the festive trading period.
Like many retailers, a large chunk of Ted Baker's sales were made online this year. Online sales jumped 35 per cent year-on-year in the eight weeks between 13 November and 7 January. The company invested heavily in its e-commerce last year, allowing it to post healthy revenue growth last June, when footfall on the high street was faltering.
Read more: Ted Baker shares rise as company hikes divi and posts 21 per cent profit
Liberum analysts said Ted Baker's figures suggested "mid-single digit" like-for-like sales growth. They gave the retailer a target price of 3,100p (the shares are currently trading around 2,709p).
George Salmon, equity analyst at Hargreaves Lansdown, said: "Ted Baker has a consistent record of sales growth, however confirmation of its resilience to more challenging times recently is still reassuring news.
"Over the years, Ted Baker’s trademark has been an absence of advertising. The quality of the clothing is such that it sells itself in locations as far flung as Indonesia and China, which both saw new points of sale pop up through Ted’s steady plan of rolling out new stores and concessions worldwide."
The brand also continued expanding abroad, opening concessions in China, another store in Indonesia and Ted Baker's first outlet in Bahrain. Ted Baker started expanding overseas after it floated in 1997 and now has more than 440 stores abroad.
Ray Kelvin, Ted Baker's chief executive, said:
Ted Baker has continued to perform well over the Christmas period against a tough trading backdrop. This result reflects the appeal of the brand and the quality of our collections as well as the talent and commitment of our team.
The positive update from Ted Baker comes after it hiked its dividend in October, despite admitting that the business was battling against "challenging trading conditions".