Moss Bros full-year profit rises by 9%
Mens formalwear retailer Moss Bros has seen its full-year pre-tax profit rise by 9% to £4.8 million despite a fall in like-for-like sales at its hire business.
Group like-for-like sales rose by 5.5% in the 53 weeks ended 31 January 2015. EBITDA increased by 5.4% to £9.7 million.
Brian Brick, Moss Bros chief executive, said: "We continue to make good progress in the delivery of our strategic priorities. The modernisation of the store portfolio is achieving the anticipated returns and we have exciting plans for the implementation of our multi-channel shopping environment.
“The adoption of the master brand "Moss Bros" and launch of our sub brands in Autumn 2014 have improved the resonance the brand has with current and potential customers of all age groups."
Like-for-like retail sales increased by 7.1% in the year as the group continued its store refit programme and implemented operational improvements across the business. As planned, Moss Bros opened six new stores and closed nine stores in the UK in the period.
The group’s hire business fared less well with like-for-like sales falling by 3.6% in the year. Moss Bros said the shortfall was confined to weddings with evening wear, Royal Ascot and school proms trading showing “good” levels of growth.
E-commerce sales climbed by 58.9% and now account for 7.8% of total sales.
Looking at current trading, Moss Bros said group like-for-like sales have risen by 7.5% in the first seven weeks of the new financial year.
Brick added: “The early response to the 2015 Spring/Summer retail range is positive, and retail like-for-like sales are continuing to improve year on year. Hire is showing signs of recovery and we are well placed to maximise revenues in 2015 following a difficult two years for wedding related hire.
“Although the external market continues to be fragile, the business is on track to achieve market expectations in 2015/16."
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