New stores dress up Ted Baker

TRENDY fashion retailer Ted Baker saw first-half profits surge more than 25% to £5.8m and chief executive Ray Kelvin has high hopes for its £299 'Fish out of the Water' suit, billed as the first washable designer suit.

Sales for the six months to 14 August rose 17% to £49m as the group continued its store opening programme, with new shops in London's Covent Garden and Westbourne Grove, both of which are performing well.

It opened an outlet in San Francisco and a fifth US store opens next month, at the Caesars Palace hotel in Las Vegas.

Later this month the group opens another central London store, opposite Liberty in Regent Street.

Kelvin said the second half had started well, with retail sales ahead more than 20% and wholesale sales up 11.3% over the first seven weeks.

Reaction to the autumn/winter collections has been 'encouraging'.

The half-time dividend is raised 9.4% to 3.5p. The shares rose 6 1/2p to 424p.