Fashion
New stores in North America and China have paid off for British fashion retailer Ted Baker, which has reported a 4.4 per cent increase in pre-tax profit, despite the challenging global retail environment.
It achieved a profit of £63 million for the year to January 28, as total revenues rose 16.4 per cent to £531 million.
Online sales rose 35.1 per cent, while 14 new stores in the US and Canada fuelled a 28.3 per cent increase in sales there.
Ted Baker also commenced a new focus on Greater China, opening a store in Beijing.
Fiona Paton, an associate retail analyst with GlobalData, says the falling demand for premium goods presents challenges in Asia.
“However with British heritage brands remaining popular in the region, Ted Baker should lean upon this trait through its marketing and store environment while working hard to gain more exposure.”
Even in the tough UK and European markets, Ted Baker thrived last year, sales rising 10.7 per cent.
Observers can expect to see even better results next year, Paton believes.
“While it has a measured approach to expansion, new stores and concessions are planned throughout Europe, North America and Asia in 2017-18, bolstering growth amid difficult domestic trading conditions.”
In range terms, womenswear was a highpoint for Ted Baker achieving 19.7 per cent growth for the year, accounting for 57.3 per cent of sales, while menswear grew 12.2 per cent.
“Menswear will simultaneously be a challenge and an opportunity for Ted Baker. While men are becoming more interested in fashion and buying more regularly, the sector is also becoming increasingly competitive as players such as Superdry extend their menswear ranges,” says Paton.
“Unlike rivals such as Whistles, Ted Baker benefits from unisex appeal but will need to monitor the competition to ensure that its designs remain distinctive enough to differentiate itself.”
