FTSE 250 movers: Clothing retailers outstrip weight of gold miners

While its larger sibling fell into the red after soaring to record levels, the FTSE 250 was still in positive territory on Tuesday afternoon, as positive earnings reports provided good cheer.

After some difficult months for the sector as weather played havoc with their seasonal sales, clothing retailers N Brown and Ted Baker posted trading updates that could be taken as harbingers of better times.

Interim results from specialist-fit group N Brown revealed adjusted profit before tax above expectations while the dividend was held steady, factors that combined to send the shares to their biggest one-day rise for a long while.

As she wrestles the retailer into the digital age, chief executive Angela Spindler said: "The Autumn Winter season has started in line with our plans. Our improving agility is enabling us to trade the business in a volatile environment. At this stage we are comfortable with current market expectations for the full year."

Ted Baker was up more than 5% as it reported a slightly bigger jump in interim profit than the market expected off the back of a currency-boosted rise in revenues.

Investors were offered bigger dividend following good performances across all channels.

In terms of current trading, Ted Baker said it was pleased with the reaction to its new collections but that external conditions remain challenging.

Plastics group Victrex was another strong riser after revealing second half sales of £135mn that were 2% ahead of consensus forecasts, a big improvement on a disappointing first half.

Retirement home builder McCarthy & Stone also revealed trading had improved in the first few weeks of its new financial year in comparison to the sharp fall it experienced after the Brexit vote.

"The retirement homes market is always held to be more sensitive to a more cautious market outlook and this appeared to be confirmed by that statement at the beginning of September," noted broker Shore Capital. "The whole of the new homes industry has preached a consistently positive message on market demand since Brexit and this update brings McCarthy back into line with that wider sector view: forward sales are now almost back in line with last year."

PageGroup was also on the front foot despite the recruiter reporting a rise in total third-quarter profit but a drop in the UK, as it expressed caution following the result of the EU referendum.

Chief executive officer Steve Ingham said: “With the prevailing uncertainty in the UK, the challenges in some of our other larger markets and the unpredictable nature of the current cycle, we remain cautious in our short-term outlook."

Analyst Jamie Constable at N+1Singer said it was a "reassuring" statement and that even though the company is cautious on the outlook the stock is "a play on global activity which does appear to be picking up".

Sports Direct also bounced back in spite of its Friday recent profit warning related to a £15m hit from currency hedging, being followed by a further descent in sterling.

A note on Monday from Goldman Sachs had said the continued fall in the currency was driving another £15m reduction in its 2017 earnings forecasts. Analysts kept their 'sell' rating and cut their price target to 250p from 275p, making Tuesday's moves even more mysterious.

With the dollar ever stronger, gold was struggling and mid-cap miners Hochschild Mining, Centamin and Acacia were sold off as a consequence.

Tullow Oil, having been one of the sharpest risers in the morning, approaching two-year highs, was among the rearguard late in the session. Brent crude was not much changed on Tuesday, however, down 0.38% at $52.94.

FTSE 250 - Risers

Brown (N.) Group (BWNG) 206.00p 17.11%
Victrex plc (VCT) 1,766.00p 8.88%
Sports Direct International (SPD) 291.50p 7.76%
McCarthy & Stone (MCS) 175.00p 7.36%
Millennium & Copthorne Hotels (MLC) 458.90p 6.47%
Ted Baker (TED) 2,546.00p 5.42%
Pagegroup (PAGE) 364.80p 4.59%
Domino's Pizza Group (DOM) 372.90p 3.70%
Wetherspoon (J.D.) (JDW) 919.50p 3.66%
Supergroup (SGP) 1,531.00p 3.52%

FTSE 250 - Fallers

Hochschild Mining (HOC) 251.30p -5.95%
Centamin (DI) (CEY) 147.60p -5.02%
Acacia Mining (ACA) 459.80p -3.38%
Tullow Oil (TLW) 273.50p -2.46%
Meggitt (MGGT) 458.40p -2.34%
Booker Group (BOK) 170.90p -2.23%
Greencore Group (GNC) 303.20p -1.75%
Vedanta Resources (VED) 647.00p -1.67%
Aldermore Group (ALD) 176.50p -1.67%
Laird (LRD) 316.70p -1.65%