Retailer’s Hire Business Struggles While Online Sales Surge

  • Moss Bros reports a 1.4% increase in total group revenue to £65.4m for the 26 weeks ended 26 July 2019
  • Hire business sales fell by 14.7% on a like-for-like basis
  • Like-for-like retail sales up 2.9%, store like-for-like sales up 0.6%
  • Losses before tax at £2.7m, including £1.1m IFRS 16 impact and £1.6m in adjusted items
  • Online sales grew 20% compared to the same period last year, representing 15% of total sales
  • CEO Brian Brick says the company is gaining traction and focusing on maintaining store growth amid lower footfall

Menswear retailer Moss Bros has posted a marginal increase in total group revenue to £65.4m for the 26 weeks ended 27 July 2019, with sales dragged down by its hire business, which fell by 14.7% on a like-for-like basis and represented only 10.7% of total sales compared to 12.3% in 2018. Despite this, like-for-like retail sales were up 2.9%, and store like-for-like sales increased by 0.6%. The group also reported losses before tax of £2.7m, including a £1.1m impact from IFRS 16 and adjusted items of £1.6m. However, online sales across all platforms grew 20% compared to the same period last year, with e-commerce sales now representing 15% of total sales, up from 12.7% in the previous year. CEO Brian Brick commented on the first half performance, stating that they are gaining traction in several areas and will continue to focus on maintaining store growth amid lower footfall in most locations. He also mentioned their ongoing conversations with landlords to align store occupancy costs with the experienced lower footfall while continuing to offer services like Tailor Me, their custom-made suiting proposition.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Moss Bros’ financial performance, including revenue increase, decline in hire business, growth in online sales, and the CEO’s comments on store performance and ongoing discussions with landlords. It does not contain digressions, sensationalism, redundancy, or personal perspective presented as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Moss Bros’ financial performance and online sales growth, but lacks in-depth analysis or exploration of long-term trends or consequences of decisions. It also does not offer significant actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Moss Bros’ financial performance impacts its stock price and may affect the retail sector
Financial Rating Justification: The article discusses Moss Bros’ financial results, including revenue growth and losses before tax. It also mentions online sales growth which can impact the company’s market value and competitiveness in the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk