Nov 13, 2014
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Ted Baker shrugs off winter worries with strong sales rise

Nov 13, 2014

LONDON, United Kingdom - British designer clothing brand Ted Baker posted a strong rise in third-quarter sales on Thursday, shrugging off the impact of warm autumn weather that has caused problems for rival retailers.

Big British retail names such as Next and SuperGroup SPG.L have already been forced to trim full-year profit guidance in recent weeks after warm temperatures kept sales of coats, jumpers and scarves on shop shelves.

Ted Baker, known for its classic cuts with quirky details, said group revenue for the 13 weeks to Nov. 8 had risen 15.7 percent, with a good reaction to its autumn/winter ranges and international exposure easing the hit from any weather issues.

That followed a 17.4 percent rise for the first half of the year when the firm posted a 24 percent rise in profits.

Despite shoppers maintaining a close watch on spending and a core British market rife with promotions, Ted Baker has enjoyed strong demand at home, while sales are also up overseas following expansion across Europe, the United States and Asia.

The firm said third quarter retail sales, which generate over 80 percent of group revenue, rose 12.7 percent, helped by 9.5 percent new store space. Wholesale sales grew 24.7 percent and were anticipated to be up 20 percent for the year, it said.

Second half gross margins would be slightly below last year, however, due to the change in sales mix.

Shares in the firm, which has over 380 stores and concessions globally, closed at 2,085 pence on Wednesday, up 16 percent on a year ago, valuing it at almost 920 million pounds ($1.45 billion).

1 US dollar = 0.6340 British pound

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