Trading updates lift retail mood

Fashion chain Ted Baker and upmarket jeweller Theo Fennell were rewarded today after the pair shrugged off retail gloom with a set of positive updates.

Shares in both companies made strong gains, with sentiment across the beleaguered sector given a further boost by predictions of a forecast-busting sales rise from Debenhams, the troubled department store chain.

Debenhams shares put back recent losses with a rise of more than 10%, while investors also returned to Home Retail Group, which owns Argos and Homebase, ahead of an update due this week. Next was another stock on the front foot.

Ted Baker said trading had been in line with expectations after total sales in its retail division rose 12.5% in the period from November 1 to Christmas Eve. The improvement was achieved without any impact on margins, while the company said it started the new trading season with a clean stock position.

Ray Kelvin, founder and chief executive, said the group was on track for a “successful outcome” for the year covering the 12 months to January 26.

He added: “We are pleased to report that the brand’s performance has once again been strong and trading across the group has been in line with expectations.”

Ted Baker shares, which have weathered the storm in the retail sector in recent months, rose by more than 5%.

The chain was followed higher by Theo Fennell shares after the jeweller said December sales were 2% ahead of last year’s record Christmas.

Chairman Richard Northcott said: “Following last year’s record Christmas these results are a little more measured, but against the current climate, impressive, none-the-less.”

The update gave an immediate boost to new chief executive Pamela Harper, who previously worked for luxury brands firm Burberry. Theo Fennell has outlets in Newcastle, Leeds and Manchester, alongside Harrods and Selfridges in London.