(Adds details on discounting, context on industry)
Jan 16 (Reuters) - Moss Bros and N Brown
warned of poor annual performance after being forced to deeply
discount earlier in the year to attract customers, adding to
fears that British retailers are still struggling as the economy
chugs along.
Moss Bros said on Thursday it expects to report an annual
pretax loss, as the British suit retailer saw fewer customers
visiting its stores, while plus-sized fashion retailer N Brown
Group forecast annual adjusted profit below consensus estimates.
N Brown, which has shut shops to focus on online sales, was
also hurt by poor performance at its financial services unit and
more discounting in the market. The company's shares were down
19% in early trade.
The owner of JD Williams, Simply Be, Ambrose Wilson and
Jacamo, said financial year 2020 adjusted pretax profit would be
between 70 million pounds to 72 million pounds ($91.3 million to
$93.91 million), lower than consensus estimates of between 78
million pounds and 84.1 million pounds.
Moss Bros, which in March reported its first annual adjusted
loss before tax since 2011, said it has seen "more intensive"
discounting from its competitors and less shoppers across the
High Street and shopping centres in Britain.
The company added, however, that it has currently resisted
discounting pressures.
Moss Bros said it expects to report a full-year adjusted
pretax loss of about 1 million pounds ($1.30 million) and said
that sales in the 24 weeks to Jan. 11 were 3% lower than last
year.
"N Brown is also reporting a highly promotional UK
market, (-50% to -70% discounts) with not much downtime between
Black Friday and Christmas offers for many," Jefferies analysts
said.
($1 = 0.7667 pounds)
(Reporting by Noor Zainab Hussain, Rishika Chatterjee and
Aniruddha Ghosh in Bengaluru; Editing by Bernard Orr)
