LONDON (Alliance News) - Suit retailer and hire company Moss Bros Group PLC Friday said it is on track in the first fifteen weeks of its financial year, with robust retail sales and hire growth meaning it is confident it will hit market expectations for the year as a whole.
The company said total sales in the fifteen weeks from February 1 to May 16 rose 6.4%, with like-for-like sales up 7.4%. Like-for-like retail sales, including its e-commerce channel, rose 7.6%, while like-for-like hire sales were up 6.4%, continuing the "encouraging" trend the company has seen in 2015 wedding bookings.
Retail gross margins are ahead year-on-year, Moss Bros said, boosted by the earlier clearance of residual stocks.
E-commerce sales were up 65%, boosted by the development of its retail and hire websites, and now represent 10% of total sales, up from 6.5% in the comparable period a year earlier.
The group added its store refit programme has been accelerated this year, with a further 11 so far completed, bringing the total to 69 out of the 128-strong portfolio.
"We are pleased with our progress. Retail sales and margins have continued to improve, boosted by the increasing contribution from refitted stores and the lower levels of residual stock. Hire sales continue to show the improvement seen earlier in the season and are showing good growth on the prior year," said Brian Brick, Moss Bros' chief executive.
"E-commerce sales in the first 15 weeks of the year continue to grow, reflecting our continuing investment in systems and infrastructure. This is another good period of progress for Moss Bros and we continue to remain confident about our medium term growth prospects," Brick added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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