Return of profits suits Moss Bros

13 April 2012

MENSWEAR retailer Moss Bros today celebrated its first annual profits in four years and said sales remained healthy in 2004.

The group said its recovery strategy - adopted after it slipped into the red in 2001 - had delivered with a higher share of the suit market and a 10% reduction in surplus stock.

Underperforming stores have also been jettisoned from the 139-strong portfolio of Moss Bros, Cecil Gee and Hugo Boss outlets to strengthen the balance sheet.

Pre-tax profits for the 12 months to January 31 were £1 million compared with losses of £2.5 million a year ago, and executives are targeting further profitable sales growth in 2004.

Chief executive Philip Mountford, who succeeded Adrian Wright to the top post last month, said the group benefited from strong trading over Christmas and in the January sales.

He said: 'It is encouraging that the momentum has increased in the new financial year, with like-for-like sales growth of 9% in the first eight weeks.'

Turnover fell to £124.1 million during the year compared with £128.2 million a year ago when the company launched an aggressive clearance programme to shift excess stock.

Moss Bros cut its retail selling space by 9% with the closure of five stores that contributed losses of £1.2 million last year, including at Purley Way, near Croydon.

A refurbishment programme was launched at ten branches to bring in new ranges, with the flagship Hugo Boss store in London's Regent Street re-opening in November. A further 30 stores are set to be revamped this year.

Shareholders will receive a 33% increase in the dividend to 1p, against 0.75p a year ago.

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