Ted Baker has posted a rise in sales and profits in its half-year report against a background of “challenging” trading conditions.
The upmarket retailer recorded a 14 per cent rise in revenue to £295.7 million and a 17.8 per cent increase in pre-tax profit to £25.3 million in the six months to August 12.
Bricks-and-mortar retail sales climbed 9.2 per cent on a constant currency basis to £217.7 million, while online sales jumped 40.7 per cent to £42.7 million.
Meanwhile, wholesale revenues went up 10.2 per cent to £78 million.
“Whilst trading conditions in some of our markets remain challenging, we are confident of making further progress for the full year, in line with our expectations,” chief executive Ray Kelvin said.
He promised UK shoppers would not fall victim to price hikes this year with a combination of hedging against currency fluctuations and a dollar-denominated income from its US operations helping to mitigate the pound’s collapse since the Brexit vote last year.
Ted Baker extended its hedging arrangements to April 2018 before the EU referendum, giving it an extra breathing space compared to other retailers.
Meanwhile, in its US market, Ted Baker said sales were adversely impacted by “higher levels of competitor promotional activity” and lower international tourism.
Despite this, the high street chain was confident enough to expand further in the country, with new stores opening in Houston and Los Angeles during the half-year period.