When a stock trades consistently above 20 times forward earnings, the market holds it to very high standards. Fashion retailer Ted Baker (TED) illustrated this dynamic when the shares dropped 2.5 per cent on publication of what would have been a strong set of half-year results from almost any other operator. The market response might reflect some profit-taking - the shares are up nearly 60 per cent year on year - as pre-tax profit of £17.8m fell slightly short of analysts' expectations.
There were other niggles, too. Gross margins dipped 0.9 points to 57.6 per cent following a shift to lower-margin licensing sales. That margin squeeze is expected to persist into the second half, although chief operating officer Lindsay Page said in the long run margins should rise again. And August trading was subdued, which Mr Page put down to "widespread reports of macroeconomic instability". The weak euro, concerns over Asian growth and lower tourist traffic all played a part in curbing consumer confidence.