Moss optimistic of further progress

UK fashion retailer Moss Bros said it was confident of outperforming its rivals today after profits more than doubled at the half-year stage.

The group, which operates shops under the Moss, Cecil Gee and Hugo Boss brands, reported steady progress despite challenging conditions, with like-for-like sales up 3% in the six months to July 30.

That helped profits to £1.7m (€2.5m), up from £800,000 (€1.16m) a year earlier, while Moss remained “optimistic” of beating the rest of the menswear market and achieving profitable growth over the second half.

It added that like-for-like sales in the first ten weeks of the second half were up 1.5%, although this was likely to have been affected by the impact of the London bombings on trade in the capital.

Today’s figures continue a turnaround that has seen the chain focus on better products and improve service levels at its stores.

The 106 shops under the Moss fascia have led the improvement with half-year like-for-like sales up 4% and margins ahead by two percentage points.

Hugo Boss, which operates from 11 outlets, achieved a 3% gain, while sales at Cecil Gee – 22 stores – were flat against the first half of last year. Four refitted Cecil Gee stores achieved 10% growth, however.

The company said costs were being tightly controlled, but that it had increased marketing expenditure by 11% in an attempt to build brand awareness and attract new customers.

Analysts at stockbrokers Baird said this was “a sign of management’s confidence that the formula is now robust”.

Shareholders will receive a half-year dividend of 0.5p a share, unchanged on a year earlier.