Moss Bross takes profit's dent easy: brighter future ahead

ANALYSIS_ British menswear chain Moss Brothers has reported a 9 percent drop in pre-tax profit to 2 million pounds in the 26 weeks to July 26. Despite the dent, the retailer looks ahead with renewed hopes, as its turnover plan seems to start bearing fruits. In this vein, the formal men fashion firm said total revenues

were up 4.6 percent to 55.8 million pounds, while like-for-like sales rising 6.4 percent, as it boosted online sales and sold more products from stores that had already been refitted.

Aimed to reconquer its main audience, the company has refitted 49 of its 133 stores, which on average generate sales 8 percent to 10 percent higher than older outlets. During the period it opened one new store and closed a loss-making outlet. In the meantime, the group's online platform, which was relaunched in 2013, doubled sales during the period and now account for 6.8 percent of group revenue.

Cantor Fitzgerald analyst Freddie George said Moss Bros's "interim results were marginally better than expected".

Moss Bross profits dragged by encouraging turnaround plans

Regarding its product range and offering, in autumn, the firm launched its Moss London, Moss 1851 and Moss Esquire labels, which will trade alongside its Savoy Taylors Guild brand. Its older Ventuno, Blazer and DeHavilland brands have been discontinued, reminded the 'Telegraph'.

"The successful launch of our new sub brand line up at the start of the Autumn 2014 season, in conjunction with our ongoing store refit programme, means our customer offer is now more closely defined and aligned with our target customer groups," added Moss Bros' CEO.

Commenting the figures, the company admitted that hire bookings for the 2014 wedding season have been last year's levels, but Moss added that hire prices continue to improve due to the introduction of more modern premium lines such as the Ted Baker morning suit. Also, marketing and online costs rose during the period to support its expansion.

"The impact of reduced hire bookings will reduce in the second half as we move out of the wedding season into the evening wear season," further clarified the retailer. It's noteworthy that hire bookings account for 15 percent of Moss Bros revenues, with the remainder coming from conventional retail sales.

Moss Bros has staged a recovery in recent years, with chief executive Brian Brick revamping ranges and stores since taking over in 2009, after the group made a series of losses. "We continue to invest in the future and make good progress in delivering our strategy," summed up Brick his plans for the future.

Brick added he was optimistic about Christmas Party season though warned the average customer was still no better off than they were last year.

On the wake of the news, the retailer's stock rose 2 percent in London.