Global fashion retailer saw sales increase 15% after receiving a post-EU ref currency boost
Companies: Ted Baker
Global fashion company Ted Baker Plc has reported a 15% increase in Group revenue for Q3 despite challenging trading conditions and market uncertainty.
Whilst trading was impacted by on-going external factors across its markets, TED managed to increase overall sales by 15.4%, and e-commerce sales by 30%. The global company did receive a Brexit currency boost, with sales increasing by a more modest 6.7% on a constant currency basis.
Overseas, the firm continued to expand with stores opening in Atlanta, Miami, and Calgary, with further small stores opening in department stores in China, Japan, Spain, and Germany.
The Board said it was confident it would make further progress before full-year results, but stressed that the FY outcome will be dependent on trading during the holiday period.
City stockbroker Panmure Gordon said Ted Baker's trading update had reinforced its investment case, with retail sales benefitting from favorable exchange rates. Panmure says it is still struggling to justify the stock's premium rating given its exposure to the UK high street.
Whilst Liberum said Ted was seeing good momentum heading into the Christmas season.
Founder and CEO Ray Kelvin said the brand had continued to perform well despite tough trading conditions:
"…we remain focused on the long-term development of Ted Baker as a global lifestyle brand. Our continued growth and development reflects the strength of the brand, our business model and our unwavering focus on product quality and design, underpinned by the skill, innovation and passion of our teams globally.
… the Group's full year results will, as always, be dependent on trading conditions over the important Christmas period."
The FTSE 250 company's share price rose 3% in early trading.