Ted Baker sales strut higher ahead of crucial Christmas

Further overseas expansion helped Ted Baker step up sales growth in the third quarter but the fashion retailer stressed that the Christmas period would determine whether the year will be a success.

Despite continuing challenging external conditions that have seen other retailers stumble, the FTSE 250 group drove revenues up 14.8% in the 13 weeks to 12 November 2016, a modest acceleration from the 14.4% in the first half of the year that may have something to do with the further weakening of the pound since August.

Retail sales from its chain of shops and the website increased by 15.4%, or 6.7% in constant currency as the chief executive Ray Kelvin pursued further international expansion with three new stores opened in North America and department store concessions in China, Germany, Japan and Spain. Retail sales in the first half had been 13.6%, or 9.6% at constant currencies.

As part of the retail effort, e-commerce sales were up 30.3%, or 26% excluding the effect of the pound.

Wholesale sales increased 13.2% thanks to good performances in the UK and North America.

Both retail and wholesale gross margins were in line with management expectations.

"The reaction to our collections has been very encouraging, however, the group's full year results will, as always, be dependent on trading conditions over the important Christmas period," said Kelvin.