Ted Baker fashion set for Las Vegas

Fashion label Ted Baker had Las Vegas in its sights today after unveiling the next stage of an expansion plan that helped lift first half profits by 26%.

The chain said the opening of new stores in the UK and elsewhere contributed to pre-tax profits of £5.8m (€8.4m) and a positive start to the second half.

Ted Baker managed to buck the trend seen elsewhere in the retail sector, where the poor summer weather was blamed by many for poor trading, adding that it had a experienced a “good, solid season”.

The company said it had continued its successful expansion, with a good performance by stores including one dedicated to its specialist Endurance range.

It said its fifth US store would open at the end of the month at Caesar’s Palace in Las Vegas, while another store would open in central London’s Regent Street.

Finance director Lindsay Page said Las Vegas would expose the Ted Baker brand to a variety of customers, adding: “It gets an enormous footfall.”

Turnover rose by 17% to £49 million in the 28 weeks to August 14, including a 13% hike in retail sales and a 24% increase in wholesale business.

Menswear sales saw sales increase by 24% reflecting the continued expansion of its collections and the Endurance range. Womenswear sales, which represent nearly 40% of total sales, were up 9.5%.

Ted Baker said it was pleased with the initial reaction to its autumn and winter ranges, with retail sales up 20% in the seven weeks to October 2, compared with the same period last year.

The group added: “The second half has started well and we are confident of a positive outcome for the year.”

By the end of the first half, Ted Baker had 23 stores and around 50 concessions and employed 1,000 staff.

It has its flagship store in London and other sites include Leeds, Glasgow, Liverpool, Birmingham, Manchester and the Bluewater shopping centre in Kent.

During the period, it launched its first Endurance store in Covent Garden, stocking suits, shirts and ties made of crease-resistant and liquid repellent fabrics, as well as mosquito-repellent T-shirts.

It also opened a store in San Francisco which it said had enjoyed “excellent trading” to date.

Stores have also been opened in London’s Westbourne Grove, Guildford in Surrey and Stansted Airport.

The interim dividend of 3.5p was awarded, compared with 3.2p last year.