(Adds analyst comments, details; updates share movement)
May 23 (Reuters) - British suit specialist Moss Bros Group reported a decline in its high-margin hire-salesbusiness during the 16-weeks to May 17 as less people borrowedoutfits in a subdued UK wedding market.
Shares in the company fell as much as 4 percent in earlytrading on Friday on the London Stock Exchange.
Moss Bros reported a rise in March wedding outfits bookingbut cautioned that it was too early to say if this upturn wouldbe sustained.
"Hire sales are down 3.8 percent over the period, reflectingcontinued weakness in the number of weddings," analyst JohnStevenson of Peel Hunt said in a note.
Hire sales contribute about 16 percent to overall sales.
The company, which sells and hires out formal clothing inthe UK through its Moss Bros, Moss, Moss Bros Hire and SavoyTaylors Guild brands, however, said it remained confident aboutthe company's medium-term growth prospects.
The menswear specialist reported a 5.4 percent rise in totalsales for the period, while like-for-like sales increased 6.3percent helped by increasing contribution from revamped storesand the lower levels of residual stock.
Moss Bros, which operates 135 stores, revamped a furtherseven stores so far this year as part of its five-yearrefurbishment programme launched in 2012.
Like-for-like retail sales, including e-commerce, rose 8.5percent helped by favourable customer response to new season'sranges.
Moss Bros has been aiming to build its online business,which is growing steadily but currently accounts for 6.5 percentof total sales.
The company has kept a lid on costs by avoiding heavydiscounting. Rival Debenhams had issued its secondprofit warning in less than a year in December after a long-heldstrategy of slashing prices failed to boost its crucialChristmas sales.
Shares in the company were down 1.6 percent at 120.50 penceat 0855 GMT. (Reporting by Aastha Agnihotri in Bangalore; Editing byGopakumar Warrier)
