Moss Bros grows full year profit and sales
Mens formalwear retailer Moss Bros has grown both its sales and profits in the year to 25 January 2014 after seeing a strong performance at its retail business.
While pre-tax profit rose to £4.4 million from £3.1 million in the previous year, group like-for-like sales increased by 4.2% to £122.2 million.
EBITDA climbed 16.5% to £9.2 million driven by improved sales and tight cost control.
The group’s retail business saw strong growth in the year with like-for-like sales rising by 6.4%. However, its hire business fared less well with like-for-like sales dropping by 6.4% after a difficult wedding season in 2013.
During the year, the group decided to adopt Moss Bros as its master brand and plans to realign its sub-brands in autumn 2014. It also refitted 13 stores which are performing to expectations.
Online sales surged by 208.6% and now account for 5.1% of total sales.
Moss Bros said the new financial year had started well with sales in the first eight weeks rising by 7.3%. Like-for-like gross profit in the eight weeks to 22 March 2014 increased by 6.4% on the equivalent period last year.
The group added that early season bookings for its hire business in 2014 had stabilised after a difficult 2013 and that March had seen an upturn in bookings compared to last year.
Moss Bros chief executive Brian Brick said: "We enter the new financial year with a strong balance sheet and a commitment to a significantly increased dividend. The ongoing cash generation of the business will support the continued investment in store refits and develop our multi-channel capability. 2014 will see an increase in marketing to support the opportunities identified in the findings of the customer insight project, conducted in 2013."
He added: "The business is on track to achieve market expectations in 2014/15."
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