Moss Bros warns on profit
Men’s formalwear retailer Moss Bros has warned on profit after struggling against problems with availability of stock, challenging hire sales and reduced footfall in its stores.
In a statement, the company said it anticipates that profit for the year to 26 January 2019 will be at a “materially lower” level than current market expectations.
Moss said a consolidation of its supplier base in response to Sterling weakness has led to short-term issues regarding the availability of stock.
Brian Brick, chief executive of Moss Bros, explained: “The beginning of the year has been hampered by short term stock delivery issues caused by the consolidation of our supplier base. The resulting stock shortage has undoubtedly driven a significant shortfall in sales, which will continue until late Spring. Although this has been a painful experience, I am confident that the availability issues are well on track to being resolved and the margin benefits from the consolidation will flow through.”
In addition, the company’s hire sales business has faced difficulties although its peak trading period is still to come. As such, Moss said it will remain prudent in its outlook.
Meanwhile, the reduction in store footfall that was experienced towards the latter part of December has continued, reflecting a more cautious consumer environment.
Despite the profit warning, Moss will continue to increase investment in key areas of future growth, particularly ecommerce, product development, the customer experience and its Tailor Me proposition.
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