Oct. 2 (Bloomberg) -- Ted Baker Plc, the clothier that dressed actor Daniel Craig in ``Casino Royale,'' fell in London trading after saying increased concern about the economic outlook is hurting sales.

Ted Baker dropped 8.25 pence, or 2.3 percent, to 337 pence, paring an earlier decline of almost 6 percent. Revenue deteriorated in the past two weeks, the London-based company said today in a statement. The clothier also said sales at its U.S. shops weakened near the end of the first half through Aug. 9.

The FTSE 100 Index, the equity benchmark for Ted Baker's main U.K. market, slid 6.1 percent in the two weeks ended Sept. 26 and plunged 5.3 percent on Sept. 29. Financial companies in London, where the retailer opened its first shop in the city's financial district this year, will cut 10,000 jobs in the next three years, because of the global credit crunch, Experian Group Ltd. has said.

``We are concerned that City customers will be severely impacted by the economic downturn,'' Freddie George, an analyst at Seymour Pierce in London, wrote in a research report. He stopped advising investors to buy the retailer's stock, cutting his recommendation to ``hold.''

Numis Securities also dropped its ``buy'' advice, cutting its rating to ``add.'' The brokerage firm lowered its estimate for the fiscal year's pretax profit to 23 million pounds ($40.6 million) from 24.3 million pounds, saying the Ted Baker brand ``is not immune'' to an industry slowdown.

Higher Dividend

First-half profit climbed 8.4 percent after new stores added to sales, the company said. The dividend for the period was raised by 5 percent to 5.25 pence a share.

Ted Baker stock has slid 39 percent this year, heading for its biggest annual retreat since the company went public in 1997.

``We remain cautious about trading, given the uncertain economic environment,'' the clothier said. British companies from fashion chain Miss Sixty to furniture maker Willis Gambier Holdings Ltd. have failed in the past week as spending deteriorates. Ted Baker generates about two-thirds of its sales in the U.K., according to Oriel Securities.

Net income rose to 5.25 million pounds, or 12.4 pence a share, in the 28 weeks ended Aug. 9, from 4.84 million pounds, or 11.4 pence, a year earlier. Sales gained 8.2 percent to 71.6 million pounds and increased 18 percent at the retail unit. At the wholesale division, where the company is dropping customers who fail to suit its brand image, revenue fell 12 percent.

Ted Baker, whose headquarters is called The Ugly Brown Building, has built a global brand from a shirt shop opened in 1988 in the Scottish city of Glasgow. It now has about 120 outlets and department-store concessions around the world.

To contact the reporter on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net.

Last Updated: October 2, 2008 12:20 EDT