U.K.'s Ted Baker, House of Fraser Report December Sales

Ted Baker Reports Upbeat Christmas Trading, but Reduced Profits

Quirky British fashion brand Ted Baker reported a 7.2 percent increase in retail sales for the period from Nov. 1, 2008, to Dec. 24, 2008, compared to the same period in 2007.

However, the sales were achieved against an increase in retail space of 17.8 percent and a drop in gross margins of some 2.5 percent over the same period. As a result, the company expects profit before tax for the full year to be at the lower end of the range of market expectations.

"This is a creditable performance in a very challenging market," says Ray Kelvin, founder and chief executive officer. "We expect 2009 to be a challenging year, but believe that we are well placed to deal with the difficult trading environment. Our brand remains strong with a loyal customer base and our financial strength will allow us to continue to invest in the development of the Ted Baker brand worldwide and to take advantage of opportunities that may arise. We remain focused on providing great products for our customers and offering the highest service levels."

House of Fraser Boosts Sales

U.K. department store group House of Fraser reports total sales for the five weeks to Jan. 3 up 4.5 percent on the same period in 2007, with like-for-like sales down 1.5 percent.

"There is no doubt that the retail sector has experienced one of its toughest years to date," says Don McCarthy, House of Fraser chairman. "However, our performance over the Christmas period was positive and we are satisfied with the robustness of our business. The outlook for 2009 remains challenging and we will continue to focus on managing our business accordingly so that our positive performance can continue throughout the new year. However, we do anticipate changes to our brand portfolio, as underperforming brands will leave our business and brands that are performing well will grow alongside new brands introduced during the year."