Ted Baker falls as FTSE slides below 7,000

Market report Scott Reid

Ted Baker fell out of fashion with investors as it warned that recent poor weather was likely to dent sales.

The group said unseasonable conditions across the UK and Europe, as well as on the east coast of America, had knocked recent trading and warned over “challenging” conditions in many of its global markets.

The cautionary stance came as it posted a 12.3 per cent leap in pre-tax profits to £68.8 million for the year to 27 January.

George Salmon, equity analyst at Hargreaves Lansdown, noted: “The online operation is growing strongly, while the steady roll-out of stores in new locations across the world is sensible, and adds further geographic diversification.

“These factors give us confidence that Ted Baker can keep building on its remarkable record of having raised the dividend each year this century, and by at least 10 per cent every year other than in two years during the depths of the financial crisis.”

Despite that upbeat sounding, shares in the fashion house tumbled 13 per cent to close at 2,556p.

Flybe plummeted 26 per cent to 34.6p after Stobart Group said it did not intend to make a bid for the regional airline after failing to agree “satisfactory terms”.

Last month shares in Flybe rocketed after Stobart said it was weighing a potential approach for the Exeter-based business.

London’s benchmark FTSE 100 share index had another tough session, sliding 86.38 points, or 1.2 per cent, to 6,952.59. Shares in Reckitt Benckiser rose after the FTSE 100 firm announced that it has ended talks to acquire Pfizer’s consumer healthcare unit. Logistics outfit Stobart Group has said it does not intend to make a bid for Flybe after failing to agree “satisfactory terms” with the regional airline.