Men’s suits retailer Moss Bros has cautioned that its full year profits would come below expectations for the full year, in the retailer’s second profit warning this year.
It warned that profits for the year to January 26 2019 would now be “materially lower” than previously reported, sending share values plummeting nearly 30 per cent.
It attributed to dire predictions to a continuing decline in footfall, alongside stock shortages across its stores.
Moss Bros has reportedly been “consolidating” its supplier base in attempts to counter price hikes driven by the fall in the sterlings value. In turn this has led to limited in-store stock during the first few months of the year.
“The beginning of the year has been hampered by short term stock delivery issues caused by the consolidation of our supplier base,” chief executive Brian Brick said.
“The resulting stock shortage has undoubtedly driven a significant shortfall in sales, which will continue until late Spring. Although this has been a painful experience, I am confident that the availability issues are well on track to being resolved and the margin benefits from the consolidation will flow through.”