Retail sales for the period increased by 4.6% (5.1% in constant currency). E-commerce sales increased by 30.5% (31.3% in constant currency) and represented 19.2% of total retail sales. Average retail square footage rose by 5.6% to 404,864 sq.ft (2016: 383,330 sq.ft) and the Group's expansion continued with the opening of a new store in Oxford and further concessions in premium department stores in Canada, Germany and the UK. We also opened an outlet in Chicago and relocated our Bicester outlet. This performance was achieved despite continued challenging external trading conditions across some of Ted Baker's global markets, most notably in October.
Wholesale sales for the period increased by 14.2% (15.4% in constant currency) reflecting good performances from both our UK and North American businesses. We now anticipate low double-digit wholesale sales growth (in constant currency) for the full year.
Both retail and wholesale gross margins were in line with our expectations.
Our product and territorial licensees continue to perform well with further licensed store openings in Kuwait and Qatar.
Whilst the outcome for the full year will, as ever, be dependent on trading during the important Christmas period, the Board is confident of making further progress and meeting its full year expectations.
Commenting on trading, Ray Kelvin CBE, Founder and Chief Executive said:
“The business has continued to perform well and develop in line with our expectations, reflecting the strength of the Ted Baker brand and the quality of our collections.
The Group's continued growth in the period, despite challenging trading conditions across some of our global markets, has again been underpinned by our business model and the unwavering focus on product quality and design that are central to everything we do.
The reactions to our Autumn/Winter collections have been positive. Whilst the Group's full year results will, as ever, be dependent on trading conditions over the important Christmas period, we remain confident of meeting our expectations for the full year and continuing to develop Ted Baker as a global lifestyle brand.”
Ted Baker intends to make its next trading statement covering the period from 12 November 2017 to 6 January 2018 in mid-January 2018.