Moss Bros sees profits rise amid tough trading
Financial By Garry Polmateer | October 1, 2017
Men’s suit retailer Moss Bros has posted a healthy rise in half-year sales and profits, despite bemoaning a “very tough trading environment”.
Pre-tax profit at the high street firm rose 15.7% to £4.2 million on revenue of £66.6 million, up 4.3%.
The group said like-for-like sales rose 2.8% in the six months to July 29, while comparable retail sales rose 5.1%.
Chief executive Brian Brick said that Moss Bros is operating in “one of the most competitive retail environments” the firm has seen.
He added: “We remain acutely aware that market conditions remain tough, with a highly competitive retail landscape set to continue alongside an unpredictable economic back-drop.
“There are significant cost headwinds, driven by National Living Wage, the Apprenticeship Levy and weaker sterling.”
Like other retailers, Moss Bros has been hammered by the collapse in the value of the pound and waning consumer confidence as Britain’s economic growth stutters in the wake of the Brexit vote and Theresa May’s general election disaster.
The firm said that current trading shows that like-for-like retail sales in the eight weeks to September 23 are up 3.5%, although comparable sales at its hire division are down 4.7%.