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.

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