Ted Baker storms ahead

Already well established in the UK, Ted Baker is expanding across the continent. Total European sales grew 17 per cent to £140m in the six months to 9 August, with retail sales up 15 per cent to £105m. The group's second-largest market is the US and Canada, where total sales rose 19 per cent to £36m. Ted recently opened a new store in Philadelphia, and plans to open new outlets in Las Vegas, Miami and Toronto in the second half. At the period-end, Ted had 44 concessions across the US and Canada, 17 stand-alone stores and 6 outlet stores.

Ted Baker is also pushing the brand into Asia, the Middle East and Australasia via multiple licence partners. In the first half, it opened stores in Dubai and Egypt, and made its debut in Saudi Arabia with two new sites. Asian retail sales grew 16 per cent to £6m, but Ted said its brand was still in the “early stages of development” in the region.

Unlike Next, which recently admitted to difficulties in shifting its autumn/winter stock due to the balmy September weather, Ted said its new ranges were selling well. Group finance director Lindsay Page naturally attributed this to the strength of the brand - plus the fact 40 per cent of Ted’s clothes are sold outside of Britain.

The online business is also thriving. E-commerce sales rose nearly 50 per cent in the first half to £14m, with the group re-launching its UK site last October and moving its US website onto a new technology platform in July. Mr Page said an “admirable” 10 per cent of group sales are now generated online.

Broker Liberum Capital expects full-year adjusted pre-tax profits of £47m and EPS of 81p, up from £40m and 68.1p in 2013.