Ted Baker posts strong full-year revenues as e-commerce sales expand

19th Mar 2015 08:25

UK clothing designer Ted Baker enjoyed a strong year in 2014 driven by a rise in e-commerce and US sales.Revenues were up 20.4% to £387.6m, helped by e-commerce sales rising 58.2% to £36.7m.Pre-tax profits marched 25.3% higher to £48.8m, driving earnings per share up to 82p from 67.2p.Chief executive Ray Kelvin said good performance at the UK wholesale business drove group wholesale volumes up by 28.5% to £80.7m, while a strong performance in the North American business also aided sales growth.Kelvin noted: "Our customers' reaction to our Spring/Summer collections across markets has been very encouraging and we are excited by our new store openings in the coming months, which include a first store devoted to showcasing our extended licence product range in Spitalfields, London."Looking ahead, he said management planned to further develop the e-commerce site after the US e-commerce site, launched last July, had been a "success". It added that it expects to continue to perform well despite a competitive trading environment.Expansion in Europe will be aided by a new store in Amsterdam and its first Spanish outlet in Barcelona.In wake of the positive trading data, Ted Baker increased its dividend by 19.6% to 40.3p.Cannacord analysts said the results had beaten their forecasts as well as the market consensus. "We have adjusted our forecasts to reflect the faster than expected growth of Business Lending (including professional BTL) and impressive cost control and impairment experience."The broker maintained its 'buy' recommendation and increased its price target to 3180p from 2575p.