Ted Baker revenues in 2013 up 26.5 percent

REPORT_ Ted Baker in its annual report said that group revenues for the period rose by 26.5 percent to 321.9 million pounds (545.7 million dollars). The composite gross margin decreased to 61.7 percent, reflecting an increase in wholesale sales as a proportion of total sales and a

decrease in the wholesale margin. Profit before tax and exceptional costs increased by 26.7 percent and profit before tax increased by 34.6 percent.

Adjusted

basic earnings per share, which exclude exceptional costs, increased by 22.3 percent and basic earnings per share increased by 30.5 percent.

The retail division delivered a strong performance with sales up 24.6 percent. Average retail square footage rose by 10.7 percent. Retail sales per square foot rose 11 percent. Sales through our e-commerce business increased by 55.7 percent and the retail gross margins were largely in line with last year at 66.1 percent. Ted Baker Womenswear delivered a good performance with sales up 30.5 percent. Ted Baker Menswear performed well with sales increasing by 21.9 percent. Menswear represented 44.4 percent of total sales in the period.

Sales in our UK and Europe retail division were up 20.3 percent. E-commerce business performed very well during the period with sales increasing by 51 percent, with the UK site benefiting from the launch of a new platform in November 2013. Sales from our UK wholesale division increased by 32.5 percent. Sales from US and Canadian retail division increased by 38.1 percent, which includes sales from US e-commerce business which is in its early stage of development. Sales from US wholesale business increased by 46.7 percent.

“We continue to focus on the long-term development of Ted Baker as a global lifestyle brand. We developed our presence in both new and existing markets and have further invested in people and infrastructure to support our long-term growth opportunities. This included the development of a new e-commerce platform, which was successfully launched in November 2013 and is a key part of our growth strategy,” opined David Bernstein, Non-Executive Chairman, Ted Baker.

In Middle East, Asia and Australasia, the company as of 25 January 2014, together with licence partners, operated a total of 40 stores, 7 concessions and 1 outlet across these territories. In Asia, the company is investing in newer markets to support the long-term growth of the business. Sales from retail division increased 59.7 percent.

“Our retail business has started the new financial year well, and we are encouraged by the reaction to our Spring/Summer collections. We continue to develop our UK business with store openings planned in Glasgow and London Heathrow Terminal Two and the relocation of our outlet store in York. Following the successful launch of our new e-commerce platform, we will further develop our e-commerce site to provide a more relevant customer experience and advance the local content provided to our European customers, including language options specific to key countries,” added Bernstein.

In continental Europe, the company opened further concessions in France and The Netherlands with further openings planned in Spain. The company will be opening a store in Marseille in May and an outlet store in Paris in March. In the US, company’s growth continues with the opening of three new stores as well as further concessions through a leading department store. In Asia, following a year of significant expansion, company remains focused on building brand awareness in these markets. It has recently opened a concession through a leading department store in Tokyo, Japan.

Company’s licensed partners recently opened stores in Dubai and Egypt with further openings planned in Saudi Arabia, Abu Dhabi, Taiwan and Thailand during the year. It also inked a new agreement with a licence partner in Central America, who plans to open one new store in Panama during the year.

On January 9, 2014, company announced the appointment of Andrew Jennings to the board as an independent Non-Executive Director, effective from February 1, 2014. Andrew brings a wealth of international retail experience gained over 40 years at some of the world’s most respected high-end department stores.