Ted Baker Share Price (TED)

PE too high

Ted Baker: Seymour Pierce raises target price from 850p to 950p, hold recommendation maintained.

Commenting on trading, Ray Kelvin CBE, Founder and Chief Executive said: "The Group has delivered a good result over the period, in line with our expectations. We are very encouraged by the reaction to the brand and collections in our new markets where we are investing for the longer term development of the brand and further new store openings are planned for the coming months, including our first store in Toronto, Canada, further stores in Shanghai, China as well as a new store in Heathrow Terminal 3. Whilst we are pleased with our performance to date, full year results will as always be dependent on trading over the key Christmas period." We intend to make our next trading statement covering the period 11th November 2012 to 5th January 2013 in mid-January.

Wholesale sales for the period were 14.2% above the same period last year reflecting continued growth in our US wholesale business and a good performance from our UK wholesale business, which includes our wholesale export business. We expect Group wholesale sales for the full year to be some 12% ahead of last year. Gross margins were, as anticipated, in line with last year. The good performance seen from both our product and the territorial licences in the first half of the year has continued and further licensed store openings are planned in Kuwait later in the year.

Interim Management Statement For the 13 week period from 12th August 2012 to 10th November 2012 'Good performance across all channels reflecting strength of brand and collections' Ted Baker, the British designer brand is pleased to announce a 22.1% increase in Group revenue for the 13 week period from 12th August 2012 to 10th November 2012 (the "period"), compared to the same period last year. Retail sales for the period were 24.6% above the same period last year and average retail square footage rose by 13.7% over the period to 269,942 sq.ft. (2011: 237,446 sq.ft.). We were pleased with our overall performance, particularly in the UK and also in the rest of Europe where we have opened further concessions in leading department stores in the Netherlands, Ireland and Spain as well as our first concessions in Germany. Our e-commerce business also continued to perform very well. Our development into Asia continued with the opening of our first store in Beijing, China and we are encouraged by the reaction to the brand and our collections in these new markets. In the US, we opened further concessions through a leading department store, although our momentum was disrupted by the effects of Hurricane Sandy towards the end of the period.

http://www.investegate.co.uk/ted-baker-plc-(ted)/rns/interim-management-statement/201211150700101698R/