Clothing retailers Ted Baker and Quiz hold their own despite challenging marketplace
SHARES IN Ted Baker rose seven per cent in trading on the London Stock Exchange after retail sales jumped 9 per cent in the eight weeks to January 6 compared to the year before.
Online sales proved a bright spot for the retailer, rising 35 per cent over the period and counting for nearly a third of total sales.
However, founder and chief executive Ray Kelvin, pictured, said he expected the difficult trading environment to persist in the coming year.
He said: “The Ted Baker brand has continued to perform in line with expectations over the Christmas period, delivering a good retail performance driven by particularly strong growth from e-commerce, which is an increasingly important part of our retail business.”
Women’s fast fashion brand Quiz saw sales sparkle during the crucial festive trading period, booking a 32 per cent rise in revenues for the seven weeks to January 6.
The AIM-listed firm saw international sales lift 51 per cent compared to last year, driven by hefty revenue growth from its Irish stores and the roll-out of three new shops in Spain. UK sales were 12 per cent higher, while online revenues soared by 119 per cent. Quiz chief executive Tarak Ramzan said: “This growth reflects the strength of our brand and the appeal of our products to customers who want the latest looks at fantastic value. “We are continuing to execute our growth plans in each area of the business, underpinned by continued investment in our marketing, people and infrastructure.”
Shares were up close to 1 per cent following the trading update.
The performance comes at a time of challenging trading conditions for clothing retailers as they battle tighter household budgets and online competition.
Earlier this month, Debenhams posted a profit warning as it struggled with sales while Next reported better than expected figures following a boost in online sales.