Ted Baker, the designer clothing retailer, has warned that a tough Christmas trading period would cause profits for the year to come in below market expectations.

Retail sales rose by 19 per cent year-on-year in the period from November 1 to December 24 and gross margins showed an improvement, said the chain.

Yet, despite this "positive" performance, sales fell below what the group had hoped for. This was largely because of difficult High Street conditions rather than any specific trading problem.

"As a result of lower- than-expected retail sales during the period, profits before tax will be ahead of last year but below current market expectations," the group said.

Chief executive Ray Kelvin added: "Ted Baker's trading performance has not been immune to the factors impacting consumers' shopping patterns in the run-up to Christmas but our brand remains as strong as ever.

"While the outcome for the year will be below market forecasts, the strength of our brand, coupled with the benefits from investments made, will ensure continued growth in the future."

The company will announce its full-year results for the year to January 27 on April 5.