Moss Bros sales down despite summer World Cup spike in formalwear interest

Tailoring retailer Moss Bros has reported first half-year like-for-like retail sales to July 28 were down -6.9%, with total group revenue, excluding VAT, of £64.5m, -3% down on the previous year.

That was despite a supposed general UK spike in formalwear sales, largely boosted by the ‘Gareth Southgate effect’, and the three-piece suit the England football manager, particularly the waistcoat, wore during England’s summer World Cup campaign, when they reached the semi-finals. During the World Cup month, Marks & Spencer, which provides the national team with its suiting, reported a 35% increase in waistcoat sales alone.

It is likely, however, that many summer weddings, usually big business for Moss Bros, were put back this year until the World Cup was over, and the prolonged warm weather is also likely to have impacted. Like-for-like hire sales, which represents 12.3% of total sales, were also down by -7.8%. However, e-commerce like-for-like sales for the first half grew by +9.5 percent on the previous year, and now represent 12.7% of total sales.

Brian Brick, Chief Executive Officer of Moss Bros Group PLC, said in a statement: "The first half trading performance was one of the most volatile for many years. We initially saw sales performance recover well following our previously highlighted early season stock shortages, and sales were generally ahead of expectation.

“This came to an abrupt end when high street footfall dropped dramatically, impacted by the protracted and unplanned period of extremely hot weather and the widespread distraction of England's success in the World Cup. Although all retailers were impacted in some way, menswear was specifically impacted negatively by the combination and longevity of these two external factors.”

A decision to continue to invest means that the Group is still on track to deliver an operating profit before adjusting items, but materially lower than current market expectation of £2.3m. Investment is focused on the innovation of its product and proposition, as well as the development of its e-commerce offer and the expansion of new marketplaces. The early response to the AW18 ranges, and launch of these new markets, has landed well and gives Moss Bros the confidence to continue to step up the momentum of that investment.

The tailoring specialist also has high hopes for the success of the newly launched ‘Slouch Suit’, retailing at £99, which is a much more relaxed take on tailoring to attract a younger customer. It’s made out of jersey with stretch and is unlined, with no shoulder pads in the jacket, and a drawstring waist on the trousers - similar to sweatpants.