CITY REACTION

Ted Baker, the British fashion house with Scottish roots, has posted a rise in sales and profits for the first half of the year despite “challenging” trading conditions.

The group booked a 14 per cent rise in revenue to £295.7 million and a 17.8 per cent increase in pre-tax profit to £25.3m for the six months to 12 August.

Retail sales grew 9.2 per cent on a constant currency basis to £217.7m, online sales jumped 40.7 per cent to £42.7m while wholesale revenues rose 10.2 per cent to £78m.

Chief executive Ray Kelvin, who set up the business in 1988 with a single store in Glasgow, said: “The Ted Baker brand has continued to perform well and in line with our expectations across all distribution channels. We are dedicated to the long-term development of the Ted Baker brand and are continuing to invest in our infrastructure and people to support our future growth.

“Whilst trading conditions in some of our markets remain challenging, we are confident of making further progress for

0 The firm has vowed shoppers will not be subjected to price hikes in 2017

“Growth may be steady rather than spectacular, but then management has always left the flashy stuff to the design team.”

GEORGE SALMON, ANALYST the full year, in line with our expectations.”

In the US, the group pointed to “higher levels of competitor promotional activity” and lower international tourism, which it said dented sales.

Nevertheless, the firm added that it remains confident enough to expand further in the country, with new stores opening in Houston and Los Angeles during the period.

In the UK, since the Brexit vote triggered a slide in sterling, retailers have been grappling with a double whammy of rising import costs for goods and deteriorating consumer confidence. Inflation is outstripping wage growth and hard-pressed shoppers are cutting back on spending.

But, in January, Kelvin vowed shoppers will not be subjected to price hikes this year with the combination of hedging against currency fluctuations and a dollar-denominated income from its US operations helping to mitigate the fall in the pound.

Ahead of last year’s referendum,