LONDON (Alliance News) - Men's formalwear retailer Moss Bros Group PLC Friday said its positive trading momentum from last year has continued into the first 16 weeks of its new financial year, with sales growth in its retail business and online, and improving suit hire sales.
Moss Bros said it has traded in line with market expectations so far this year, with its like-for-like "cash profit" in the 16 weeks to May 17 up 6%, driven by strong growth in retail sales, with total sales growth across the business of 5.4% in the period, and like-for-like sales up 6.3%. The group said it remains confident about its medium-term growth prospects.
"We are pleased that retail sales and margins have continued to improve, boosted by the increasing contribution from refitted stores and the lower levels of residual stock," said Chief Executive Brian Brick in a statement.
Its retail business, which accounts for a majority of the group's overall sales, saw sales increase 8.5% in the 16 week period, with like-for-like sales up 6.3% on last year, boosted by a stronger online presence and a a good performance from its new season;s ranges. It said like-for-like hire sales were still down 3.8%, due to a subdued wedding market, but marked an improvement on the prior year's like-for-like decline of 6.2% for the first 18 weeks of the year.
Last year, the retailer invested in its UK store estate, launched a new hire website, and developed a number of international websites for its retail business, as well as expanded its product offerings, which Moss Bros said all contributed to the increases in sales and profits for the year.
As a result, Moss Bros said Friday that online retail sales continue to grow strongly, now representing 6.5% of group's sales in the period, and up a huge 115% on last year, of which 9% came from its new mobile site, boosted by better traffic flow, conversion and customer retention rates. It said that international sales are now also contributing to its growth online.
The group said it has refitted a further seven stores so far this year, bringing the total number of stores trading in its new store format to 45 out of a total portfolio of 135 stores.
"The new format stores continue to trade ahead of non-refitted stores and are on track to achieve their anticipated payback targets," the company said.
The group said it will announce its half-year results on September 22.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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