Ted Baker defied gloomy expectations for the British retailing sector as the self-proclaimed "global lifestyle brand" reported double-digit sales growth over the Christmas season.

The clothing retailer saw retail sale grow 17.9% for the eight-week period from Nov. 13, 2016 to Jan. 7, 2017 compared with the same time period last year. Sales were up 10.9% on a constant currency.

"This good performance was achieved despite a backdrop on on-going external factors ... continuing to impact trading across our markets," the FTSE 250-listed retailer said.

Shares were up 2.6% to 2,718 pence at 11:30 am GMT, the stock has gained 7.11% over the past three months.

Online sales increased by 35% in the eight week trading period.

The FTSE 350 General Retailers Index was up 0.21% on the day at 2,507.16.

In November, Ted Baker reported a 15.4% increase in sales for the 13 weeks ending Nov. 12, with online sales gaining 30.3% in that period.

The results come at odds with those from British retailer Next (NXGPY) . The retailer last week reported worse-than-expected sales over the festive season and warned that 2017 would be difficult.

Sales for the 54-day period from Nov. 1 until Christmas Eve fell 0.4% and full-year sales were marked at +0.4% from 2015.

"The year ahead looks set to be another challenging year; therefore we are preparing the Company for tougher times and have set our full price sales budget accordingly," Next said. "The fact that sales continued to decline in quarter four, beyond the anniversary of the start of the slowdown in November 2015, means that we expect the cyclical slow-down in spending on clothing and footwear to continue into next year."

This warning sent shockwaves through British retailers who are preparing for inflationary pressure due to the fall in the pound since the U.K. voted to leave the European Union.

Next stock was down 0.65% at 4,126 pence, shares have lost more than 17% since the beginning of the year and are down 39% over the past 52 weeks.

Ted Bakers resilience during a time of pressure for other retailers has led many analysts to name it the retailer to watch.

"In our view, despite a challenging backdrop, Ted's solid trading performance continues to place the brand on the winning side especially in what appears to be diverging fortunes in Christmas trading updates thus far," Jefferies analysts said in a note to clients on Tuesday.

Despite inflationary pressures and a weakening outlook for disposable income growth, "the brand's positioning in the premium segment and flexible business model offers resilience. TED's experienced management team has a proven track record in pulling the necessary levers to drive long-term growth of the brand," the analysts added.

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