MOSB.L Share News (MOSB)

UK menswear company Moss Bros said its overall performance continues to improve on the previous year, despite a tough start, and is trading in line with market expectations. Total sales for the continuing business for the first 18 weeks picked up after a slow start to the half, and were 0.6% up on last year. Like-for-like (LFL) sales climbed 0.3% for the same period. "The business continues to make good progress in tough market conditions, and although the board is mindful of the macro-economic environment and its impact on consumer spending, it remains confident the business will meet market expectations for the year," Moss Bros said in a company statement.LFL retail sales, including e-commerce, rose 2% while hire sales, as expected, fell 6.2%. Like-for-like cash gross profit increased 0.6% during the 18 weeks to June 1st from minus 2.4% during the first difficult seven weeks of the year.Chief Executive Officer Brian Brick added: "We are pleased that retail sales and margins have reverted to a positive trend after a difficult first seven weeks of the half." "Hire sales are performing in line with management expectations, although like for likes are expected to be volatile throughout the rest of the year as the Hire business anniversaries against the unusual trading pattern seen during last summer's sporting events."Moss Bros said while it remains cautious about the general economic environment it believes its strategy of refitting stores, investing in e-commerce infrastructure and focusing on its target market will strengthen the Moss Bros brand and will maximise profitability. We are confident about our medium term growth prospects."The group said it has maintained a healthy cash balance.CJ