Quirky fashion retailer Ted Baker managed retail sales growth of 13.3 per cent in the 13 weeks to November 8, when group sales edged up 1.8 per cent.

Wholesale slid 21 per cent, however, and chief executive Ray Kelvin was cautious about prospects despite believing Ted remains well positioned to ride the downturn.

Broker Numis described the update as “weak”, downgraded its recommendation from add to hold and cut 2010 profit forecasts by 20 per cent.

Numis analyst Andy Wade said: “The perception of immunity that hung over the luxury and ‘bridge’ fashion sub-sectors is slipping away. Even a strong business with a strong brand can do little in the face of rapidly contracting demand.”

But Dresdner Kleinwort’s Sanjay Vidyarthi retained his buy stance. “Ted Baker is one of the strongest mid-to-small retailers we cover, with excellent long-term potential,” he argued.

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