Ted Baker defies warm autumn concerns
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Market concurs, with analyst Sohil Chotai from Edison Investment Research saying that "After Next's warning this week about the negative impact of recent warmer weather on trading, Ted Baker investors should be reassured that its own UK & European sales were up 16 percent with a positive outlook for the second half."
More international expansion for Ted Baker in H2
The fashion label added that its half-year retail sales in the UK and Europe were up 16.7 percent to 139.7 million pounds as it enhanced average retail space 7.6 per cent. In its domestic market, the UK, the firm runs 183 shops and concessions, with a further 77 in Europe.
"We have successfully opened new spaces in our international markets, with further planned for the second half of the year in line with our strategy to focus on expansion opportunities that are appropriate for our brand,” commented Kelvin.
Ted Baker was particularly happy with its womenswear collection, which “had performed very well” with sales up 19.2 percent to 106.9 million, now accounting for 58.7 percent of total sales up from 57.8 percent a year ago.
Meanwhile, the group's menswear also enjoyed a good performance, seeing sales up by 15 percent to 75.3 million pounds.
On a separate note, Ted Baker announced a dividend on Thursday, October 2nd, aimed at stockholders of record on Thursday, October 16th will be paid a dividend of 11.30 pence per share on Friday, November 21st. This represents a dividend yield of 0.6 percent.
A number of analysts have recently weighed in on the stock, with Peel Hunt reiterating its ‘buy’ rating on shares of Ted Baker plc in a research note on Thursday. They now have a 2,400 pence price target on the stock. On a related note, analysts at Oriel Securities Ltd reiterated an ‘add’ rating on the stock, setting their price target at 2,200 pence.
Angela González Rodríguez