Moss Bros has recorded a dip in half-year like-for-like sales due to deeper discounting and weaker footfall but insisted its performance was on “an improving trend”.
For the 23-week period ending January 5, the formal menswear retailer said overall like-for-like sales dipped one per cent, while total sales edged up by 0.6 per cent year-on-year.
The retailer experienced lacklustre in-store sales due to reduced footfall during the period, resulting in a marginal 0.1 per cent increase in retail like-for-likes and 1.9 per cent year-on-year growth in total sales.
Moss Bros’ online arm was the star performer of the business, with sales growing 27.8 per cent year-on-year.
Ecommerce sales now made up 16.2 per cent of Moss Bros’ group revenue, up from 12.8 per cent last year. On the other hand, hire sales dragged the retailer’s overall performance, dropping 11.2 per cent year-on-year on a like-for-like basis.
Hire sales comprised of less than 10 per cent of Moss Bros’ group revenue for the 23-week period.
Meanwhile, gross margins for the period dropped by 2.6 per cent year-on-year due to increased promotional activity and the “required deeper discounting than planned” after Black Friday.
Despite the results, the retailer hailed improvements in sales during the second half of its financial year against a “challenging consumer backdrop”.
