MENSWEAR chain Moss Bros yesterday reported a sharp drop in sales and warned tough trading conditions will leave annual profits short of expectations.
Moss Bros said like-for-like sales were down 5.2% for the past 18 weeks, compared with a 2.6% fall in the first half of its financial year.
Shares fell by 12% in early trading as the company said the challenging conditions in the retail sector were likely to have a “material adverse impact” on market expectations for its full-year profits.
But Moss Bros stressed the bulk of the crucial Christmas trading period was still to come.
Chief executive Philip Mountford, said the retailer would now focus on reducing costs in the business.
“Our sales performance in the last two months reflects the very tough trading conditions in our markets,” he said.
“The business is ever vigilant to opportunities to reduce costs and maximise cash flow and proactively take steps to drive sales in what we expect to continue to be a challenging retail market.”
Moss Bros, which was founded in 1851, has struggled in recent trading with pre-tax losses of £1.6 million in the six months to July 26.
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The news comes days after retail tycoon Sir Philip Green offloaded his 28% stake in the business, having earlier ruled out a takeover bid.
The Topshop and Burton billionaire, who snapped up the stake last month, made a profit of £1.05 million before dealing fees when it was sold last week to Simon Berwin, head of Leeds-based suitmaker Berwin & Berwin.
Mr Berwin now has a 29.9% holding in Moss Bros.
Berwin & Berwin, which began trading in 1885, has sales of around £55m a year, producing 18,000 suits a week.
Moss Bros said sales in the 44 weeks to November 29 were behind 3.6% on a like for like basis and total sales had dropped 3.7% in the period.
But the company – which specialises in men’s suits and tailoring – said it had maintained strong cash balances.
