Fashion retailers Next and Ted Baker have reported a surprise slowdown in sales, blaming unusually warm autumn weather.

Next said underlying sales for August and September were 3.1% down on the year, once the one-off effect of higher late summer discount stock was stripped out.

And upmarket fashion chain Ted Baker admitted that sales since mid-August had been "disappointing."

Both companies cited unseasonably warm weather, saying Indian summer sunshine had deterred shoppers from buying their autumn and winter ranges.

City jitters

Ted Baker - which also reported a 19% jump in half year profits - insisted the downturn in sales was a temporary blip.

But the figures - which followed a downbeat survey of the retail sector from the Confederation of British Industry - exacerbated City fears of a slowdown in consumer spending.

By early afternoon, Next shares were down nearly 9% at 802.5p, while Ted Baker was off 2% at 196p.

Other retail stocks fell in sympathy, with High Street icon Marks & Spencer slipping 4.5% to 298p, and department store Debenhams easing 5.2% to 202.75.

It was not all bad news for the fashion retail sector, however.

New Look, new profits

New Look, the budget ladies' clothing group, bucked the gloomy trend by telling investors that it expects to beat its current profit targets.

It said strong sales in the UK and in its joint venture in France would mean profits of �44m ($66m)for the first half of the financial year.

This is higher than the �34-38m analysts had been expecting.

The company, which doubled its profits last year, is moving to larger stores and expanding its product range.

New Look's confident forecast initially lifted its shares, but they later fell back 2% to 252p.

The company's shares, which are up 52% since the beginning of the year, are still one of the better performing retail sector stocks.