Ted Baker reports robust growth in all markets

Group revenue of Ted Baker increased by 20.4 percent to 387.6 million pounds (574.9 million dollars). The retail division at Ted Baker performed well with sales up 18.4 percent or 20.8 percent in constant currency to 306.9 million pounds (456.1 million dollars). The performance of e-commerce business was strong and sales increased by 58.2 percent driven by growth across all areas of e-commerce business. The retail gross margin reduced slightly to 65.5 percent against 66.1 percent in 2014.

Commenting on the company’s performance, Ray Kelvin CBE, Founder and Chief Executive, said, "This was another excellent year as we continued to develop Ted Baker as a leading lifestyle brand across global markets and distribution channels.”

Group wholesale sales increased by 28.5 percent or 29.8 percent in constant currency, reflecting a good performance from both UK wholesale business, with sales increasing by 25.3 percent and our North American wholesale business, with sales increasing by 39.1 percent. Gross margins were down from last year at 42.4 percent against 43.4 percent in 2014.

Licence income was up 31.2 percent, with both territorial and product licences performing well. There were notable performances from product licencees in footwear, eyewear, neckwear, skinwear and lingerie. In September, the company opened our first store in Panama with licence partner. Its licensed stores in the Middle East, operated by our territorial partner, RSH Limited, also performed well during the period with further openings planned as a result.

Ted Baker womenswear delivered a good performance with sales up 22.6 percent benefited from a greater proportion of new space added during the period and as a result represented 56.6 percent of total sales. Menswear performed well with sales up 17.7 percent and represented 43.4 percent of total sales in the period. Sales in our UK and Europe retail division were up 16.7 percent or 17.8 percent in constant currency, reflecting a good performance in the UK market and a very good performance in continental Europe where the company continues to expand.

In the UK, it opened new stores during the year and relocated Birmingham store. The company also closed store in Heathrow Terminal 1 due to the closure of the terminal and closed another. The company also opened further concessions with premium department stores in France, Portugal, Spain and the Netherlands and one in Istanbul, Turkey.

The company continues to develop the Ted Baker brand across Asia, Australasia and the Middle East through our retail and licensing channels. Retail sales in Asia increased 19.2 percent or 26.1 percent in constant currency. In China, the company opened one outlet and two concessions in Japan through a leading department store and closed one. In South Korea, it opened one concession and closed two. During the period, Middle East licence partners opened further stores in Abu Dhabi, Dubai, Egypt and three in Saudi Arabia. The joint venture with Australasian licence partner Flair Industries opened two new stores in Brisbane and Melbourne, Australia.

The Board is recommending a final dividend of 29.0p per share, making a total for the year of 40.3p per share, an increase of 19.6 percent on the prior period. The company plans to open new store in the UK, Europe, North America, and Asia. The company intends to make its next interim management statement, covering trading since the start of the financial year, in mid June 2015.