Ted Baker's rating cut to 'hold' by Jefferies

Ted Baker has had its rating cut by Jefferies to ‘hold’ from ‘buy’ as mild winter weather, discounting in the US and a slowdown in Asia is expected to slow sales at the luxury fashion retailer.

Jefferies has lowered its annual pre-tax profit forecast on the company to £58.6m, in line with consensus, saying the shares look set to “pause for a breather” after rising 39% this year.

The broker also warned that Christmas trading could be disappointing at Ted Baker.

Margins are expected to feel pressure from higher-than-expected operating costs, further IT development and international expansion.

Jefferies cut its target price to 3200p from 3400p

Shares fell 3.64% to 3,067p at 1544 GMT.