Ted Baker Christmas trading increase

For the period 1st November to 24th December 2008, British clothing brand Ted Baker announces a 7.2% increase in retail sales compared to the same period last year. Average retail square footage rose by 17.8% over the period to 183,031 sq.ft. (2007: 155,402 sq.ft.). Hence the current difficult retail trading environment, Ted Baker managed to demonstrated strength.

Due to a higher level of promotional activity, the gross margins were some 2.5% below those achieved last year, which was necessary given the competitive market. As a result, Ted Baker expects profit before tax for the full year to be at the lower end of the range of market expectations, which currently stands at £19m to £23m.

Retail sales for the period from 10th August to 24th December 2008 increased by 11.5% when compared to the same period last year. Since the end of the first half, Ted Baker opened stores in Bristol, in the Liverpool One development and two stores in Westfield London.

The clothing company made a strong start to the post Christmas sales period and expects to enter the new season with a clean stock position. Ted Baker anticipates that the firm will end the financial year with a strong balance sheet and net cash.

Commenting on trading, Ray Kelvin, Founder and Chief Executive, said: "We expect 2009 to be a challenging year but believe that we are well placed to deal with the difficult trading environment. Our brand remains strong with a loyal customer base and our financial strength will allow us to continue to invest in the development of the Ted Baker brand worldwide and to take advantage of opportunities that may arise. We remain focused on providing great products for our customers and offering the highest service levels."

Image: Ted Baker (VisMedia)