Ted Baker defies challenging market and is all set for “delivering superior returns”

The quirky fashion label is proving to be Brexit-resistant after being forecast to post six-month profits in the region of 19 million to 21 million pounds – up from 17 million pounds for the same period a year ago.

Founder and chief executive Ray Kelvin said Ted Baker "continues to perform well" since the first half and the group is pleased with the reaction to its autumn/winter collections. But the fashion retailer warned: "Ongoing external factors impacting trading across our established markets have meant that conditions remain challenging."

These figures have driven analysts to agree on how Ted Baker is "Proven internationally and competing in the attractive and less crowded accessible luxury space,” what leads them to “believe Ted looks well set to capture the global opportunity and deliver superior returns," reports City ‘A.M.’

Ted Baker has “growing desirability” according to Exane BNP Paribas

In this vein, analysts at Exane BNP Paribas describe it as a brand with “growing desirability”, noting it has delivered stable, consistent growth for nearly 30 years. Exane BNP Paribas retail analysis team also predicts sales in North America to continue to grow – more than doubling in the next five years to 185 million pounds while sales growth in Britain will be considerably smaller.

Ted Baker Plc (LON:TED) had its stock rating retained as ‘Buy’ in a report released by analysts at Jefferies International. The analysis firm set a target price of 2,820 pence on the company’s stock, which indicates a potential increase of 11.42 percent from Ted Baker Plc’s current price of 2,531 pence apiece.

The general sentiment is positive towards the company, which has managed to report strong profits for the first half of 2016 despite challenging trading conditions. "This is the company's first update since Brexit, and is a strong showing," said George Salmon, an analyst at Hargreaves Lansdown.

"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," further added Salmon in a note to investors issued Tuesday.

The company, which opened its first store in Glasgow in 1988 and now has 470 outlets worldwide, has seen growth in all its markets, with retail sales in the UK and Europe - its biggest market - up 8.5 percent. In North America sales climbed 28.7 percent and they were 15.8 percent higher in Asia.

Online sales meanwhile leapt 29.7 percent as the firm invested in web design, personalised content and language-specific websites, highlighted BBC News.

Photo:Ted Baker Web