Moss Bros sales up 3.7% despite tough trading environment

Menswear retailer Moss Bros achieved a 3.7% increase in sales (2.3% like-for-like) in the 15 weeks to 13 May despite a tough trading environment.

The business held its AGM today and updated the market with financial highlights which also included a 5.5% increase in retail sales (including e-commerce) and said its new season ranges were performing well. E-commerce sales, which now account for 11.6% of all sales, were up 14.7%.

However the group said a tough trading environment and a greater level of promotional activity in the market had led to it re-introducing a mid-season sale in April this year, which in turn led to an erosion of retail gross margin, which was down 50 basis points on last year.

Chief executive Brian Brick said he was pleased with the performance which was in line with the board's expectations "despite the continuing tough trading environment and a highly competitive marketplace which has seen significantly more markdown activity than the same period last year. Retail and e-commerce sales have shown further improvement against this backdrop."

He said the business remained "acutely aware" of the economic headwinds it was facing and the increased input costs which are about to come into effect (as a result of the drop in the value of Sterling since the Brexit vote).

"We are also mindful that zero real wage growth will impact on consumer confidence. We will remain agile in our response to these market conditions.

"We are focused on the peak period of our trading year, with performance strongly event driven as we enter ‘wedding season’, Ascot and the school prom season. We are well placed in terms of both our core offer and levels of stock availability to maximise our share of our customers’ spend,” Brick added.