Extreme Weather and Competitor Activity Impact Business
- Moss Bros reports £4.2m loss before tax for 2018
- EBITDA fell to £6.6m from £13.3m the previous year
- Store fixed asset impairment charges and reorganisation costs impacted results
- Significant progress made in various areas of business, says CEO Brian Brick
- Extreme weather and sporting events affected footfall
- Positive sales momentum in Q4 due to aggressive trading stance
Men’s fashion retailer Moss Bros has reported a statutory loss before tax of £4.2 million for the year ending January 26, 2019. The loss included store fixed asset impairment charges and reorganisation costs of £2.6 million and employee-related charges of £1.2 million. EBITDA fell to £6.6 million compared to £13.3 million the previous year, due to lower retail store sales, weaker sterling, and significant cost headwinds. The company faced early season stock shortages in spring 2018 that caused trading issues, which were resolved by April 2018. However, footfall was impacted by abnormally cold and hot weather and sporting event successes distracting customers from shopping across the summer. CEO Brian Brick said it was a challenging year but progress has been made in various areas of the business. The retailer suffered from stock shortages and extreme weather conditions, along with competitor activity affecting footfall into their stores. Positive sales momentum was achieved in the fourth quarter due to an aggressive trading stance, resulting in lower gross margin rates than planned.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Moss Bros’ financial performance, including specific figures and explanations for their losses. It also includes quotes from the CEO to provide context and insight into the challenges faced by the company.
Noise Level: 3
Noise Justification: The article provides relevant information about Moss Bros’ financial performance and identifies specific challenges faced by the company, such as stock shortages, weather conditions, and competitor activity. However, it lacks in-depth analysis or exploration of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: Moss Bros’ financial performance affects its stock price and investor sentiment.
Financial Rating Justification: The article discusses Moss Bros’ financial results, including a statutory loss before tax, EBITDA, and the impact of various factors on their business performance. This directly pertains to financial topics and can affect the company’s market value.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses a financial crisis for Moss Bros, a men’s fashion retailer, due to factors such as lower retail store sales, weaker sterling, and extreme weather affecting footfall. However, the impact is rated as Minor because it does not involve major deaths, injuries, or significant damage to infrastructure.
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