Ted Baker Sales Up as U.S. Expansion Goes Ahead

U.K. premium brand Ted Baker saw a 7.6 percent increase in group revenue for the 19 weeks to June 12 compared to the same period last year.

Retail sales for the period were 15.2 percent up, while average retail square footage rose by 17.1 percent over the period.

U.K. performance was better than anticipated, but trading conditions in its overseas markets remained challenging. Despite this, Ted Baker is opening two more stores in the U.S.—Boston in October and a new outlet store in Orlando at the end of this month.

The trend in falling wholesale business continues for Ted Baker and it now operates its childrenswear business solely as a license with department store group Debenhams.

Ted Baker said that its other product and territorial licenses continue to trade in line with expectations, with the exception of its license partner for North America, Hartmarx Corporation, which filed for Chapter 11 in January. The business does not expect this to have a material financial effect on its business.

"The economic environment remains uncertain, however, we remain confident that the strength of the Ted Baker brand coupled with our resilient multi-channel distribution strategy and sound balance sheet will enable the group to weather this difficult environment," says Ray Kelvin, founder and chief executive officer. "We have taken action to ensure our costs and commitments remain controlled and in line with the trends we anticipate for 2009 but will continue to invest carefully in the development of the brand where appropriate to support long-term growth."