Ted Baker keeps in fashion as sales soar

The group said retail sales were up 19.1 per cent in the period between November 1 and Christmas Eve, a trend that continued into the New Year sales.

Ray Kelvin, the firm's founder and chief executive, said: "I am pleased to report that trading continued to exceed our expectations."

He said the retailer's success in the UK reflected efforts on product design, as well as "attention to detail and excellent customer focus".

Investec Securities lifted its profits forecast for the year to January 30 by 7 per cent to 19.8m.

Mr Kelvin added that the outlook for 2010 was still uncertain but said the firm was "well placed" in the year ahead.

In the UK and Europe it operates 32 stores, 122 concessions and 10 outlet stores. It reported some improvement in trading outside the UK, although trading conditions remain mixed.

Numis Securities raised its pre-tax profits forecast to 20.1m and estimated that retail sales improved by 4.8 per cent on a like-for-like basis.

Analyst Andrew Wade also noted lower promotional activity improved the company's gross margin by 2.5 percentage points.