23 May 2014 07:00
MOSS BROS GROUP PLC
INTERIM MANAGEMENT STATEMENT
Moss Bros Group PLC ("the Group"), the 'UK's No. I Men's Formalwear Specialist', today issues its Interim Management Statement for the 16 week period from 26 January 2014 to 17 May 2014.
The Group's overall trading performance continues to improve on the prior year, in line with market expectations. Strong retail sales (which account for the majority of total sales) have underpinned this continued good performance and the Group is on course to deliver anticipated levels of growth.
Highlights:
· Total sales for the continuing business for the first 16 weeks increased by 5.4% on last year. Like-for-like sales were up 6.3% for the same period.
· Like-for-like retail sales, including e-commerce, were up 8.5% with the new season's ranges performing well. Hire sales were 3.8% lower reflecting a subdued wedding market.
· Like-for-like cash gross profit, benefiting from the strong performance in retail, was 6.0% up on last year after 16 weeks.
· E-commerce retail sales continue to grow strongly, up 115% against last year, supported by the ongoing development of the new Retail website, now in its second year of operation.
· Our mobile site comprises 9% of e-commerce sales following its launch in May 2013.
· Country specific sites are now in place for Eire, Sweden, Denmark, Netherlands and Australia with international sales currently comprising 6% of total online sales.
· Traffic flow, conversion and customer retention rates continue to improve.
· Our multi-channel Hire website, launched in November 2013 is performing well and has seen gradually increasing traffic flow and revenue.
· Total e-commerce sales now comprise 6.5% of total sales compared with 3.3% for the same period last year.
· As previously reported we have accelerated our store refit programme in 2014 and a further seven stores have been refitted so far this year, bringing the total number of stores trading in the new format to 45 out of a total portfolio of 135 stores. The new format stores continue to trade ahead of non-refitted stores and are on track to achieve their anticipated payback targets.
· The revitalisation of our brand communications and offer is well underway with the new master brand "Moss Bros" replacing "Moss" in-store and online. New products adopting the new sub-brand hierarchy are being launched in store and online for the Autumn 2014 season through the introduction of the Moss London, Moss 1851 and Moss Esq. labels.
The business continues to make good progress on its key strategic objectives and the Board remains confident the business will meet market expectations for the year.
Commenting on the outlook, Brian Brick, Chief Executive Officer, said:
"We are pleased that 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 are below last year's levels, although, being 16% of overall group sales, the impact of this shortfall is more than offset by the strong performance on retail. E-commerce sales in the first 16 weeks of the year continue to grow strongly, with international sales now contributing to that growth, reflecting our continuing investment in systems and infrastructure. We are confident that the introduction of full multi-channel capability later this year and the added CRM capability will enable us to further exploit our position as the UK's leading men's formal wear specialist.
Our strategy of refitting stores, investing in multi-channel infrastructure and focusing on our target market and customer offer through carefully directed marketing initiatives will strengthen the Moss Bros brand and maximise profitability. We continue to remain confident about our medium term growth prospects."
The Group will announce its Interim Results on 22 September 2014.
Like-for-like represents financial information for stores open during both the current and prior financial periods and compares 26 weeks against 26 weeks, except for stores refitted in the period, where the period closed for refit is excluded from both the current and prior financial periods. Like-for-like Hire sales are calculated on cash receipts in the period, before adjustment for the movement in the level of hire deposits held.
For further information please contact:
Moss Bros Group Plc: 0207 447 7200
Brian Brick, Chief Executive Officer
Robin Piggott, Group Finance Director
Buchanan: 0207 466 5000
Charles Ryland/Sophie McNulty/Gabriella Clinkard