Moss Bros sales progress held back by Olympics
Moss Bros, the formal menswear retailer, has reported a rise in both sales and profits despite its hire business being impacted by the summer of major events in the UK.
In the 26 weeks to end July, pre-tax profit rose to £2.21 million from £2.15 million in the same period last year. Total revenue increased to £52.7 million from £51.8 million.
Like-for-like sales grew by 5.7% in the period with EBITDA rising to £4.3 million from £4.2 million in the first half of last year. Like-for-like sales have continued to be positive in the seven weeks to 15 September although growing at a lower rate than the first half due to the impact of the summer’s sporting events.
The company said it adapted its operations to cope with the challenges posed by the Olympic Games, including introducing night deliveries to central London stores. However its hire business missed out on £1.9 million in revenue compared with last year as people deferred their wedding bookings to the second half of the year.
Never Miss a Retail Update!Moss Bros began its store modernisation programme in the period with four stores refitted in the first half and a further 12 be refitted in the second half of the year. The company is aiming to refurbish a total of 90 stores over the next five years.
The company’s online sales grew by 42% and there are plans to launch a new retail website in time for Christmas 2012 and a hire website in the first quarter of 2013.
Moss Bross chief executive Brian Brick said: “Despite challenging economic conditions, the group’s trading performance continues positively, in line with the board’s expectations and the business is well placed to make further progress.”
