The market’s harsh reaction to the latest trading update from Ted Baker (TED) seems overdone to us. The performance from the retail side of the business was a tad slower than usual, but e-commerce, wholesale and licensing revenues continued to perform exceptionally well against a challenging environment.
IC TIP:
Buy
at
2296p
Furthermore, analysts at Liberum point out that a two-year compound growth rate of 15 per cent across retail is, in fact, very strong, while management remains confident it can still meet full-year guidance figures.