Ted Baker's figures look smart as high street rivals falter

Ted Baker is to step up its expansion in the US after barnstorming sales in the country helped it to achieve a 12.7 per cent leap in first-half profits.

The fashion retailer's US retail sales grew by 74 per cent to $16.7m (£10.8m) in the 28 weeks to 13 August, boosted by new concessions and strong demand for its clothes. But UK and European sales rose by a more modest 7.8 per cent over the period, to £69.2m, while gross margins were dented by a higher level of promotional activity.

Ted Baker said it would open four new concessions, a standalone shop and an outlet store in the US in the second half, as well as a branch in Tokyo.

It will also add 13 concessions in US department stores, including Bloomingdales, and Nordstrum, and a new flagship shop in New York in 2012. Next year will also see the company opening a shop in Beijing.

Ted Baker posted a 12.7 per cent rise in pre-tax profits to £8.5m, saying the "strong performance" reflected its continued investment in the brand. Total revenues rose by 16.6 per cent to £102.8m.