Ted Baker celebrates 25th anniversary with historic high

ANALYSIS_ Fashion retailer Ted Baker (TED.L) has started its 25th year in existence quite in fashion or “very strongly” as highlighted analysts at Jefferies. The British fashion retailer has reported a 32 percent rise in revenues in the 20

weeks to the middle of June. Shares in the group closed at 17.20 pounds on Thursday, up 17 percent.

Ted Baker is enjoying a wealth of celebration for its 25th anniversary in the business. The fashion apparel brand launched in 1988, and now, in such a remarked date, it can palate the sweet after having posted 32 percent rise in revenues in the first half of the current year.

“The increase in momentum [in sales] reflects the strength of TED's collections and careful inventory control particularly in its core UK market,” the Jefferies analysis team said, consequently keeping their ‘buy’ rating.

Joy has reached the trading floor, as shares in Ted Baker hit an all-time high Thursday, hours after the retailer posted its figures. Shares closed up 15.7 percent at 1,700 pence.

Strong demand in the UK and its expansion overseas have boosted the fashion brand sales and overcame all expectations.

Despite the poor weather conditions that have been argued by its fashion peers to explain weaker figures, Ted Baker has seen a 30.7 percent increase in retail sales in the 20 weeks to 15 June. In terms of international footprint, Ted Baker has opened its first concession in France and added more in Spain, the Netherlands, and Toyko as well as a store and outlet in Shanghai. It plans to open up to nine concessions in the US this year, as the company advanced Thursday.

Ted Baker celebrates 25th anniversary also trading high

“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,” assured founder and chief executive Ray Kelvin.

Ted Baker plc (LON: TED) was upgraded by equities research analysts at Espirito Santo Investment Bank Research from a ‘neutral’ rating to a ‘buy’ rating in a research note issued to investors on Thursday. The firm currently has a 1,650 pence target price on the stock, up from their previous target price of 1,150 pence.

Commenting the news for ‘CityAM’, Sanjay Vidyarth at Espirito Santo said: “It has delivered sales growth well ahead of expectations... Retail sales are up 30.7 percent off a 13.4 percent rise in space, suggesting double digit sales density growth. This has come across all markets but we think the UK has been a major driver.”

Similarly, analysts at Jefferies quoted by ‘Citywire’ have backed the management’s direction for the business, saying: “We support management's cautious expansion approach and our investment thesis reflects TED's opportunities in topline/online growth and positive operational leverage.”

Finally, Panmure Gordon has raised its target price for Ted Baker from 1,411 pence to 1,571 pence after the British fashion group's better-than-expected first quarter, but has kept its 'hold' rating on the stock.