Ted Baker expected to boost revenues despite high street worries
Retailer Ted Baker is expected to show it has raised revenues in results released this week, despite tough high-street conditions.
Analysts suggest the clothing company’s half-year revenue will be shown to have gone up around 4.5 per cent when it announces results this Thursday, as luxury goods continue to escape the bloodbath at the lower end of the market, according to consensus analyst estimates compiled by S&P Global Market Intelligence.
The company’s stock has performed poorly this year, falling to a three-year low in July despite posting a revenue rise and strong online growth. The company has said it is operating in an “uncertain” consumer environment, with several high-street stalwarts such as John Lewis and Debenhams struggling.
Michael Hewson, chief market analyst at CMC Markets UK, said: “it may be doom and gloom in retail but Ted Baker’s recent numbers have been fairly good even if the share price performance hasn’t been.”
“Its lower cost base along with fewer stores, strategically placed concessions, and wholesale approach has allowed it to keep costs down and maximise its margins.”
Read more: John Lewis could face profit hit after heavy discounting
Lee Wild, head of equity strategy at Interactive Investor, said the retailer’s share price had begun to settle.
“Ted Baker aims at the upper end of the high street market, and its shares were once as pricey as its clothes,” he said. “Suffering from a wider slowdown across the sector, the valuation is now much more reasonable and well below the historic average.”
“Any positive surprise at these results will be well-rewarded,” he added.