Ted Baker profits surge 18.6% on expansion drive

Ted Baker’s full-year profit rose by nearly a fifth due to strong demand for its offbeat fashions and the opening of stores from Mexico to the Middle East, setting the UK clothing retailer apart from its rivals in a competitive market.

It said yesterday that initial reaction to its latest spring and summer collections had also been “positive”.

Established British clothing retailers are engaged in a fierce battle with fast-fashion brands such as Inditex’s Zara and the trendsetting designs of the likes of Reiss and Whistles.

Next and Marks and Spencer have attributed disappointing sales to an unusually mild winter, while French Connection’s sales were hit by a lukewarm response to its spring collection.

Ted Baker’s dresses, suits, and shirts, often sporting quirky details such as flowery collars and polka-dotted sleeves, have helped it to stand out from rivals in Britain and, increasingly, overseas.

Ted Baker’s stock has more than tripled in the last five years.

At a multiple of 26.9 times its 12-month forward earnings, it trades at a premium to most of its peers. Its shares fell 1.3% at one stage yesterday, in line with other retailers.

Ted Baker, which opened its first store in Glasgow in 1988, has outlets in more than 35 countries.

For the year to the end of January, profit before tax and exceptional items rose 18.6% to £58.7m (€74.7m) as sales rose 17.7% to £456.2m.

* Reuters