Moss Bros reports jump in profits as revamp bears fruit

Men’s tailoring retailer Moss Bros reported a jump in profit in the six months to the end of July and “encouraging” trading in the eight weeks to 24 September as the company's revamp bears fruit.

First-half pre-tax profit was up 30% to £3.7m while operating profit was also up 30%, to £3.6m. Like-for-like sales grew 4.9% and total sales increased 4.1% to £63.8m.

Meanwhile, the interim dividend was lifted by 6.1% to 1.91p per share.

The company said improvements in brand identity from the ongoing store refit programme combined with better defined master and sub-brands, continues to underpin the full price offer and is well received by customers.

E-commerce sales – which now account for 10.3% of total group revenue – were up 9% versus the first half of last year thanks to further investment in the retail and hire websites and the group’s focus on leveraging the existing customer database to drive conversion and average order value.

Chief executive officer Brian Brick said: "The half year under review was another period of strong progress for the company. Having originally launched the Moss Bros sub brand line up at the start of the Autumn 2014 season, we have ensured that our customer offer is more clearly defined and more closely aligned with our target customer groups.

“Alongside this, the significant ongoing store refit programme, which will be substantially complete by the end of this financial year, has continued to steadily build equity in the Moss Bros brand.”

The company said early customer response to the new Autumn Winter ranges was positive and like-for-like sales continue to show year-on year-growth.

In addition, it said the initial response from customers to its 'Tailor Me' personalisation service was positive.

Moss Bros added that trading in the eight weeks to 24 September has been “encouraging”, with like-for-like sales up 3.7%.

At 1100 BST, the shares were up 1.5% to 103p.