Ted Baker has said that a major accounting blunder is almost three times as bad as they first thought.

Auditors at Deloitte found that the value of Ted Baker's stock inventory was overstated by £58 million.

It is a huge increase on the company's first estimates of between £20 and £25 million late last year.

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The news shows that the investigation is largely completed, said Liberum analysts Wayne Brown and Adam Tomlinson.

"The statement is light on information as to how this error arose and we await the conclusion of a further review by Freshfields which should hopefully be completed by the time of the prelims in late March," they said

On December 2, Ted Baker revealed that it had discovered a discrepancy in its accounts from January 26 last year.

The company said at the time it had appointed law firm Freshfields Bruckhaus Deringer to comprehensively review the issue. It later hired Deloitte to comb through the accounts.

It comes after a tough year for the company, which has lost several of its top team.

Shares fell to 16-year lows in December as chief executive Lindsay Page and chairman David Bernstein announced they were stepping down, after another profit warning.

Mr Page said that the last 12 months had been the "most challenging" in the firm's history, as he resigned.

Burberry's sales halved in Hong Kong as political turmoil continued to drag on retailers in the Chinese city state, but the luxury clothes brand has still been able to up its outlook for the year.

Management said total revenue for the year will grow in the low single-digit percentage, above its previous forecast of no significant change.

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It revealed that sales in Hong Kong, where it previously made 8% of global revenue, had halved in the most recent quarter.

It now makes around 4% of global sales from the city state.
Chinese tourists have kept away from the island amid huge anti-government protests that have raged for months.

They have not lost their appetite for Burberry, sending sales up by a mid-teen percentage in mainland China.

"We've absorbed a significant impact from Hong Kong, but we've seen strength in China," finance boss Julie Brown said on a call with reporters.

Overall revenue grew by 1% to £719 million in the 13 weeks ending December, the business revealed.

CMC Markets analyst David Madden said Burberry is benefiting from a move to the poles of high-end fashion and the cheaper brands.

"It would appear the so-called 'squeezed middle' are seeking out bargains, hence why goods in the middle of the price range are feeling the pinch," he said, while "the very wealthy who purchase high-end brands like Burberry are not feeling the pain, which is why the fashion house is holding up well".

Sales at the fashion house stayed high even though it did not take part in the traditional rush to offer discounts over the Christmas period.

"We're putting less inventory into the markdown," Ms Brown said, meaning that many clothes were selling at full-price.

Analyst Mr Madden said: "It is not uncommon for firms to lower prices in a bid to get stock out the door, so it is encouraging to see that Burberry's revenue rise was largely fuelled by full-price sales."

Ms Brown said the company would continue to monitor the situation in Hong Kong, and the outbreak of coronavirus in China.

Shares fell 3.45%, or 79p, to 2,184p in early trading.

WH Smith's stores in train stations, airports and hospitals have continued to perform well but high street sites remain in decline, the company said.

It revealed sales rose 7% in the 20 weeks to January 18, but a 5% fall in revenues in its high street division offset a strong 19% jump in travel.

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Chief executive Carl Cowling said the integration of its new North American business Marshall Retail, which was bought for $400 million (£312 million), is progressing well.

He added that since announcing the deal last October, the company has won a further eight new units in the US.

On WH Smith's high street division, Mr Cowling would only say: "In UK travel, we have seen continued growth across all our key channels and we are on track to open a new flagship pharmacy format at Heathrow Terminal 2 this summer.

"Our high street strategy continues to deliver through continued gross margin gains and tight cost control."

When stripping out the purchase of Marshall Retail and InMotion - a separate travel accessories business - like-for-like sales in travel rose 3%.

Around 15 to 20 new stores are expected to be open in travel locations across the UK this year, including eight in hospitals.

On the high street, the company continues cutting costs, and Mr Cowling - who took the top job in November - said a further £3 million of savings have been identified. Total savings for the year will be around £12 million with "gross margin growth" in profits.

Investors were less impressed, with shares dropping 1.4%, down 34p to 2,506p, in early trading.

Ed Monk, associate director at Fidelity Personal Investing, said WH Smith now has more overseas travel stores than UK ones - calling the division "the engine room of the company".

He added: "WH Smith has been on a winning streak with markets lapping up whatever news comes out of the retailer.

"The shares are trading at 22 times earnings, but this represents a dip from recent highs. Many will no doubt be looking for the right time to buy."