Ted Baker reveals increase in annual profits but misses forecasts

British fashion label Ted Baker saw 2012 revenues and profits edge higher as the company opened new retail stores worldwide.

British fashion label Ted Baker saw 2012 revenues and profits edge higher as the company opened new retail stores worldwide.

The company reported group revenues of £254.5m for the year to January 26th, 2013, an 18% increase from £215.6m a year ago. It beat the £253m forecast by stockbroker Oriel Securities.

However, the brand's pre-tax profits fell short of the analyst's expectations of £31.5m - reaching £28.9m, up 19.2% from the previous year's £24.3m.

Expansion provided a boost to sales as the group launched its first retail stores in Japan, China and Canada while adding new shops in London, New York and Hong Kong.

The retail division delivered an 19.4% rise in revenue to £208.0m, on an increase in average square footage of 14%. Gross margins increased to 66.2% from 65.2%.

US and Canada experienced the biggest climb in retail sales, growing 68.3% to £36.7m.

Wholesale sales jumped by 12.2% to £46.5m, reflecting growth in the US and UK.

"This strong performance has been achieved despite a challenging and competitive trading environment and is testament to the strength of the brand, our collections and our people," Founder and Chief Executive, Ray Kelvin, said.

Ted Baker raised its dividend by 13.7% to 26.6p per share.

In the year ahead, the group said it will continue to build brand awareness in new markets and will invest in further retail openings.

Shares fell 0.30% to 1,350p at 08:10 Thursday.

RD

Recommended

Should you buy Vodafone shares, or steer clear?
Share tips

Should you buy Vodafone shares, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargrea…
17 May 2022
Melrose Industries: a British manufacturer that is well-placed for recovery
Share tips

Melrose Industries: a British manufacturer that is well-placed for recovery

Melrose, the aerospace and automotive manufacturer, has been hit by the pandemic, but the shares are unduly cheap says David J Stevenson.
17 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
16 May 2022
Britain’s ten most-hated shares – w/e 13 May
Stocks and shares

Britain’s ten most-hated shares – w/e 13 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
16 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022