Clothing retailer Austin Reed was out of fashion in the City after revealing a dramatic drop in business over recent weeks.

Chief executive Roger Jennings said sales across the group had plunged 11 per cent in the past month as shoppers tightened their belts.

They rose three per cent in the six months to August 10 to £60.3 million, fuelling an eight per cent jump in pre-tax profits to £2.7 million.

But like-for-like sales were down 12 per cent in the past five weeks and Mr Jennings said it was now stepping up promotional activity.