Ted Baker: a 17% increase in sales in the first semester

By

Olivier Guyot

Published
Oct 2, 2014

Ted Baker had a great first half of the year. For the 28 weeks preceding 9 August, the British brand showed sales amounting to 233 million euros (182 million pounds), a growth of more than 17% compared to the same period last year. And this increase can be seen across all of its markets.

Ted Baker recorded a 16.7% improvement in its sales in Europe, amounting to 178 million euros. Direct sales were up 15.1%, led by the opening of three boutiques (including "Les Terrasses du Port" in Marseilles) and concessions in department stores. Its wholesale sales in the United Kingdom reached +21.6%.

In North America, its sales reached 46.5 million euros, with a 19.3% growth, +13.8% of which came from retail thanks to 17 boutiques, 44 concessions and 6 outlets, and a wholesale growth of +47.1%.

For the rest of the world, the brand is developing with licensed partners and shops. In Asia, its activity has improved by 16%, climbing to 7.4 million. The group continued its development in the Middle East, notably signing for two openings with RSH Limited. In Australia, the brand has also set up shop in Brisbane and Melbourne thanks to its licensed partner, Flair Industries Pty.

In the end, the group operates 381 boutiques and concessions around the world, including 183 in the United Kingdom, 77 in Europe, 67 in North America, 47 in the Middle East, and 7 in the Pacific.

Its direct sales activity advanced by 14.8%, with of course a 10% expansion of its square meters, representing 179 million euros. Its wholesale sales amounted to +26.8%, or nearly 54 million.

Despite an erosion of its gross margin from 59.7% to 58.5%, the brand saw its net pre-tax result reach 20 million euros, up 33.8% compared to last year.

The brand is counting on an 18% progress in its wholesale sales across its entire fiscal year. As for boutiques, Ted Baker has announced openings in Miami and Toronto by the end of the year, as well as a location in London's Heathrow airport.

Its partners should also be inaugurating new boutiques in Turkey, Abu Dhabi and Saudi Arabia. The brand is also breaking into a new market: it has just opened up in Panama.