Ted Baker (TED) lost some of its shine this year, but there’s renewed momentum behind the share price. The group doesn’t report an overall like-for-like sales growth measure considering its multi-channel model, but break interim numbers down by division and geography, and it’s clear that the fashion retailer is performing well in a challenging market.
Retail sales rose by 14 per cent to £218m at the halfway stage, with the UK and Europe up 11 per cent and North America up 18.8 per cent. The latter enjoyed a significant currency tailwind thanks to the strength of the dollar – constant currency sales grew by a more modest 7.8 per cent to £61m – but this helped offset higher levels of competition and poor tourism numbers in the region. E-commerce sales are also flying – up by a whopping 44 per cent to £42.7m.
Gross margins across the business are largely stable, and they'll be shored up by the now-completed transition to a single European distribution centre in the UK. Dual-running costs relating to three legacy sites came in at £1.2m in the first half, but should fall to £0.9m in the second.
Analysts at Peel Hunt expect pre-tax profits of £76.6m for the year ending January 2018, giving EPS of 129p, compared with £65.8m and 112p in FY2017.
| TED BAKER (TED) | ||||
| ORD PRICE: | 2,819p | MARKET VALUE: | £1.25bn | |
| TOUCH: | 2,812-2,820p | 12-MONTH HIGH: | 3,150p | LOW: 2,286p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 469p | NET DEBT: | 59% | |
| Half-year to 12 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 259 | 21.5 | 37.1 | 14.8 |
| 2017 | 296 | 25.3 | 43.6 | 16.6 |
| % change | +14 | +18 | +18 | +12 |
| Ex-div: | 19 Oct | |||
| Payment: | 17 Nov |
