Branded suit specialist Moss Bros Group has today reported annual like-for-like (LFL) sales growth of 8.2 per cent for the 15 weeks to May 14th, helping LFL gross profit increase 9.8 per cent on the same period last year.
The company said that its benefitting from the cost reduction programme introduced in the second half of the 2010/11 financial year as well as the strengthening of its product offer.
Moss Bros is currently undergoing something of facelift, and the last trading period coincided with the offloading of its Hugo Boss franchise stores, which saw the business receive £5.1 million.
The remaining £12.3 million will be received on the successful assignment of store leases to Hugo Boss, and it was revealed today that this process is progressing as expected.
Meanwhile Moss Bros opened its first new format Moss store, in Canary Wharf, which representing the first time the three core fascias of Hire, Retail and Bespoke appear in one outlet. The progress of this format is being assessed and could be rolled out further in the year ahead.
Brian Brick, CEO of Moss Bros, said: “We are pleased with the sales momentum which has continued into this year and the control on margins, helped by the decision not to go on mid-season sale this year.
“There is no doubt that we are benefiting from strengthening our product offer.
“The selective refurbishment of our stores and a more simple business model will enable us to focus on the strengths of the core Moss brand.”
Although economic indicators suggest that the squeeze on consumer spending is likely to continue for some time to come, with inflation expected to rise and a potential interest rate hike on the horizon, Moss Bros is cautiously optimistic about the year ahead.
Brick added: “We have a strong foundation from which to build and develop further our product offer, upgrade the standards of presentation of our stores and continue to improve our customers’ experience.
“We remain confident about our medium term growth prospects.”