Moss Bros sales grow despite challenging autumn

(ShareCast News) - Formal menswear specialist Moss Bros reported a rise in sales for the 23 weeks from 2 August to 9 January, as its promotional strategy offset a challenging trading environment in autumn.Like-for-like sales were up 4.2% on the previous year, while total sales for the period were 4.8% higher.Retail sales, comprising 86% of group revenue, benefited from the increased number of refitted stores, while total retail sales grew 3.5% on a LFL basis.Hire sales, meanwhile, rose 9.5%, thanks to a successful evening wear season.Gross margins for the half year to date were up 2.8 percentage points. This was largely thanks to an improvement in retail gross margins on the back of a continued focus on more coordinated and better targeted promotions, particularly over Black Friday and despite an unseasonably warm autumn.In e-commerce - which accounts for 10% of group revenue - sales increased 32.7% on the previous year in the 49 weeks to 9 January, with mobile and table sites growing strongly.Moss Bros opened four new stores and closed eight in the year to date, with the total estate now comprising 126 outlets.The company refitted 21 stores during 2015/16; 81 stores currently trade in the new shop format and there are plans to refit a further 20 stores in 2016/17.Chief executive officer Brian Brick said: "We are pleased with the progress of our promotional strategy, with fully coordinated and better targeted offers in our retail business. This has allowed more consistent full price trading, particularly through the Black Friday trading period, with gross margins showing a sustained improvement as a consequence."The board remains confident in the outlook for the full year."At 1030 GMT, Moss Bros shares were flat at 95.50p.