Ted Baker has announced strong cross-channel and international growth for the full year to 27 January 2018, with revenues and profit before tax rising 11.4% and 12.3% respectively.
Group revenues reached £591.7m for the year, with profit before tax reaching £68.8m for the same period.
The brand’s growth this year was fuelled by a 10.4% rise in retail sales, to £442.5m. Wholesale sales were also up by 14.6% to £149.2m and licencing income increased 17.6% to £21.4m.
Ted Baker’s ecommerce channel continues to thrive, with sales up 39.8% to £149.2m.
Ted Baker founder and chief executive Ray Kelvin told Drapers: “This year’s performance is down to the fact we’re a brand, and not a retailer – so we have a retail, wholesale and territorial licensing business, but not hundreds of shops in the high street. It’s not just about more and more shops. We’re reasonably protected and in a very good place.”
The brand operates 23 leases in the UK, seven in US, with the rest of the business driven through wholesale and licensing arrangements.
Kelvin said that going forward, the brand will increase its average retail space by 4%, where in the past it “averaged around 11(%)”.
“We’re not opening more and more shops – we’re taking our time and growing the business on the three fronts: shops, wholesale and licensing,” he added.
While UK and European sales form the core revenues, up 7.7% to £301.1m, retail sales in the US and Canada grew by 16.2% to £120.1m. The company currently has plans to develop its US presence, with stores opening in Austin and Orlando.
Despite these positive results, the business noted that tough market conditions, as well as adverse weather in Europe and the US, has had an impact on early trading in the spring 18 season, although it highlighted that the collections had been received well and the business remained on track in long and medium term developments.
Kelvin said: “The weather has been pretty awful. This year barely got started and as a global business we’ve had problems with the weather in the US as well. We had to shut shops last night because of the snow storm in the States. [The situation is] not good at all.”
During the past year the business has shifted from three distribution centres to one central European hub, where all logistics operations for retail, ecommerce and wholesale in the UK and Europe are now based.
It also opened new stores, including at London Luton Airport, licenced stores or concessions in the likes of Kuwait, Australia, Mexico and Saudi Arabia.