Ted Baker flaunts strong sales in third quarter - UPDATE

- Q3 revenues up 24 per cent- Margins flat- First concession opened in China Strong growth in wholesale and retail sales lifted third quarter revenues at fashion retailer Ted Baker, although growth slowed from the first half as expected. Revenues increased 24.4% to £77.1m during the 13 weeks to November 9th year-on-year. As expected, gross margin was in line with last year due to investment in people and infrastructure, with the second half guidance pointing to a continuation of this trend.Analysts at Jefferies said margin maintenance was encouraging given the weather-induced pressure other UK clothing retailers bemoaned, which resulted in mid-season reductions being brought forward.Founder and Chief Executive Ray Kelvin said the reception for the important Autumn/Winter men's and women's collections was "very encouraging"."We are pleased with our continued strong performance to date however, as ever, the Group's full year results will be dependent on trading over the key Christmas period", he added. Retail sales for the period increased 19.8% to £58.1m, wholesale revenues by 41% to £19m, with no figures given for e-commerce apart from that it "performed well".A new UK website was launched at the end of the period that will also provide local content to European customers.The FTSE 250 group reported retail store performance in its established territories was strong and it was encouraged by early-stage development of the Ted Baker brand in newer markets. International expansion continued with new concessions in department stores in the US, the Netherlands, France, Spain, Germany and a first concession in China. The fourth quarter will see new concession in Hong Kong and Gatwick South and three stores through licence partners in the Middle East and Turkey. The strong growth in wholesale sales was helped by earlier phasing of sales, an improved performance in the UK and continued strength in the US. The group guided towards 25% growth in wholesale sales for the full year.Analysts were impressed. Jefferies said sales growth was well above its expectations in the face of a tough comparative base. R"We believe EBIT margins have troughed, expansion is controlled, and we see scope for earnings upgrades as the international brand appeal continues to support sales growth momentum."N+1 Singer observed that TED has built further on its track record of consistent delivery and high quality of earnings, with "brand momentum" clearly increased and feeding through to improved growth rates. "This should continue as the maturity effect of new premium retail stores starts to feed through. "Ted remains a core holding for small cap investors given bright future growth prospects and high quality earnings and with the rating having normalised to some degree in recent weeks, we are happy holders."Shares in TED continued to amble higher after initial strides, up 4.6% to 1,872p at 13:17 on Thursday.OH