Quirky fashion brand Ted Baker has announced an 18% leap in sales as British fashion chains enjoyed their first full quarter of growth in four years.
Good weather and improving consumer confidence helped fashion retailers' sales increase 0.7% in May after lifts of 2.1% in April and 4.3% in March, according to the BDO High Street Sales tracker, which covers 85 mid-sized chains including French Connection, Gap, Hobbs and Paperchase.
Homewares stores saw even stronger growth with sales up 5.1% in May, according to the accountancy firm's regular survey, after increases of 7.8% in April and 2.1% in March.
Sophie Bevan, head of retail and wholesale at BDO, said: "The high street feels like it has turned a corner. The exciting thing is that not only is growth coming from all sectors, it's coming from the majority of retailers as opposed to just a minority boosting the overall performance.
"It's also encouraging that shoppers are getting excited about new season lines rather than just buying what they need in a sale." She said sales would have been even better if it had not been for the London tube strikes.
Ted Baker said its sales were boosted by a 48% rise in online sales in the most recent months. High street sales were up nearly 16% as the group opened new stores in Glasgow, Heathrow Terminal 2 and Philadelphia in the US.
Ray Kelvin, the company's chief executive, said the figures were not a reflection of any up-tick in the wider economy. "We are not a barometer. Our customers have an appetite for Ted Baker. As long as we look after the product, we increase the numbers in good time and bad," he said.
Analysts said that Ted Baker's sales growth was slightly ahead of expectations but the shares lost 4% to £19.35 as some investors felt the shares were becoming expensive.
Jonathan Pritchard, an analyst at Oriel Securities who downgraded Ted Baker shares from a buy to an add recommendation, said the pace of Ted Baker's sales growth had "barely flickered" and had not suffered any pain from the discounting activity of online retailer Asos, which stocks its clothing. But he added: "Sometimes brilliant companies just get close to full value."
