Fashion label Ted Baker says it is cautious about trading in the rest of its financial year after a big drop in wholesale sales slowed its third quarter revenue growth.

In an interim statement today (13 November) the lifestyle brand said Group revenue for the 13 weeks from 10 August to 8 November rose 1.8% year-on-year, and that gross margins were "in line with expectations."

But it said the period was hit by both unseasonably warm weather and increased economic uncertainty.

Retail sales were up 13.3%, but wholesale sales slumped by 21.0%.

This was partly due to the later phasing of deliveries but also reflecting the challenging trading conditions being experienced by customers, the company said.

"Our brand is well positioned and our autumn/winter 2008 collections have been well received by our customers," the company said in a statement.

But it added: "The current economic difficulties must make us cautious about trading for the remainder of the financial year."