Moss Bros revenues edge up as stores return to like-for-like growth

For the six months ended 27 July 2019, men's tailoring specialist Moss Bros reported an increase of total group revenue excluding VAT of 65.4 million, 1.4 percent up on the previous year, but losses widened.

Like-for-like retail sales were up 2.9 percent for the period compared to last year, with store like-for-like sales up 0.6 percent. Online sales across all platforms grew 20 percent, with online sales now representing 15.0 percent of the company’s total sales.

Like for like hire sales, which is what how the tailoring company made its name, represented only 10.7 percent of total sales, down 14.7 percent from 12.3 percent a year ago.

EBITDA for the first half was 11.4 million pounds after IFRS 16 impact and 3.1 million pounds before IFRS 16 impact, down from 3.7 million pound last year. Adjusted profit before IFRS 16 and before tax was just above breakeven, 0.2 million pound lower than the previous year.

Loss before tax increased to 2.7 million pounds from 1.7 million pounds last year, )after IFRS 16 impact of -1.1 million pounds and after adjusting items of -1.6 million pounds.

The company said it is seeing results across the first eight weeks consistent with its full price focus and with less old season stock to clear in HY2, and expects to be able to deliver full year results “in line with market expectations.” Additionally, it said it had seen a “strong positive reaction to new season product and new technical developments; eco suit, stretch, washable suit.”

Commenting on the results in a statement, Moss Bros CEO Brian Brick, said: “Reflecting on our first half performance, it feels that we are gaining traction in a number of areas. The return to growth of our stores is extremely important to us and we will continue to focus on maintaining this trend. The growth which we have seen in stores is set against a backdrop of lower footfall in our stores than last year in most locations in which we operate.

“Our conversations with our landlords are active and ongoing to ensure that we can align our store occupancy costs with the lower footfall which we experience, whilst continuing to offer store-centric services such as Tailor Me, our custom made suiting proposition, which continues to go from strength to strength.”

Photo credit: Moss Bros, Facebook