Ted Baker sitting pretty despite Beast

L Analysts say there are reasons to be optimistic about its prospects

While global retail sales lifted 8.5 per cent on a constant currency basis, wholesale revenues were another bright spot, up 14.6 per cent, while licence income rose 17.6 per cent to £21.4m.

It said it expects further growth in the wholesale division, which should drive high single-digit sales growth in constant currency over the year ahead.

George Salmon, equity analyst at financial services outfit Hargreaves Lansdown, said: “The arrival of the Beast from the East in early March was untimelyforclothingretailers to say the least, as it came just as they started to push spring/ summer collections. While the cold snap has seen trading slow a touch, investors should nonetheless be reassured that Ted is confident this season’s lines will fly off the shelves once things warm up a bit.

“Overall, we think there’s several reasons to be optimistic about Ted’s long-term prospects. The group’s quirky designs offer high fashion at accessible prices, and thus fill an attractive niche in market. We also like the fact expansion has been well-managed, and recent years have seen Ted grow without stretching the balance sheet too much. That makes the unexpected increase in debt something of a blot on the copybook.”