Shares in lifestyle brand Ted Baker moved up nearly 6 percent on Tuesday, as investors reacted positively to a strong first half performance.
Pre-tax profit increased by 20 percent to £21.5 million in the 28 weeks to 13 August, with revenue rising 8.5 percent across the UK and Europe. Across the entire group, revenue soared 14.4 percent to £259.5 million.
Ray Kelvin, the brand’s founder and chief executive, commented:
“Ted Baker continues to perform well across all distribution channels despite challenging trading conditions across our markets.”
“While the group has had a good start to the financial year, our results for the full year will, as always, be dependent on the second half trading period. Underpinned by the strength of the Ted Baker brand, our business model and balanced distribution channels, we remain confident of delivering continued growth and development.”
The group said the results came despite “tough trading conditions and recent events in northern Europe”. Profit was boosted by a weaker pound in the aftermath of the Brexit vote, adding an additional £1.2 million in foreign currency gain onto its overseas earnings.
“External factors” in markets including the US meant trading continued to be difficult, but figures were helped by a strong online performance. Internet sales rose almost 30 percent to £29.7 million.
George Salmon, equity analyst at Hargreaves Lansdown, told the Guardian the results were encouraging:
“Any aspirational fashion brand that can consistently grow sales across five continents without advertising is doing something right.
“This is the company’s first update since Brexit, and is a strong showing in tougher trading conditions. The second half of the year is more important to Ted Baker than the first; nonetheless, the news that sales growth remains robust provides reassurance that the group can continue to thrive, even in challenging times.”
Ted Baker (LON:TED) shares are currently up 5.92 percent at 2,558.00 (1432GMT). Ted Baker currently has 470 stores, 186 of which are in the UK.