CEO of Ted Baker sells 1.2 million shares at peek price

Ray Kelvin, founder and CEO of British beloved fashion brand Ted Baker, has sold 1.2 million shares – nearly 3 percent stake – at 17 pounds a share. The stock is trading at an all-time high since 2012. “Ted Baker plc, the British designer

brand, has been advised by Ray Kelvin, Founder and Chief Executive of the Company, of his intention to sell up to 1,200,000 Ordinary Shares in the Company (the "Placing"). This represents 2.82 percent of the total number of voting rights in the Company,” said the company in a communication issued Wednesday.

Commenting the news for ‘The Telegraph’, a spokesman for Ted Baker said Kelvin sold the shares for "personal reasons". After the sale, Ted Baker's founder and CEO's stake in the company equity has been reduced from 38.9 percent to 36 percent.

The placing will be managed by Espirito Santo Investment Bank and, according to sources close to the company, will be priced at something close to 17 pounds a share.

Despite losing 2 percent on Wednesday after the placement was made public, Ted Baker has surged to a new high both in trading (+150 percent since early 2012) and sales (+33 percent.)

“Ted Baker’s annual results in May bucked the trend for the beleaguered British high street. Already storming ahead with a double-digit leap in profits, today's figures are simply further confirmation the company is on a roll,” pointed out Stewart Baxter, director at shopper marketing agency Mesh earlier this month.

Earlier in June, Ted Baker reported revenues boosted by 32.7 percent during the first semester thanks to the strong demand in both UK – its main market, and North America.

“We are continuing to invest in developing the Ted Baker brand internationally and have been encouraged by the reaction to the brand and the collections in our new markets. Whilst as ever the outcome for the full year will be dependent on the second half, we remain very confident of our prospects,” assured Kelvin at the time.

CEO Ted Baker sells 3 percent stake at all-time high

And this strategy is clearly paying off. "Clearly Ted Baker's strategy of constant expansion and its rapid opening of stores in quick succession in the US, China and Canada has paid off, with foreign markets responding well to its quintessentially British design flair. It's delivering a consistent product that’s as accessible to the high-street shopper as it is the international customer,” commented Baxter.

In the same vein, analyst Jean Roche from Panmure Gordon, bets for the stock, keeping her 'hold' rating and explaining that “Ted Baker has reported trading for the 20 weeks to 15 June which is significantly better than we had forecast. Retail sales grew by 30.7 percent, more than double our estimate of around 15 percent on average space growth of 13.4 percent versus our estimate of around 11 percent. We are raising our 2014 pretax profit estimate by 4.7 percent to 38.4 million pounds and our price target to 1,571 pence. With an implied total shareholder return of close to 9 percent, we retain our hold rating, whilst recognising that the shares are likely to be very strong today.”