// Moss Bros issues profit warning due to coronavirus outbreak
// The retailer expects a “significant” reduction in revenue & profitability for the year ending January 30 2021
Moss Bros has issued a profit warning as the Covid-19 outbreak takes its toll on the menswear retailer.
The group said there would likely be a “significant” reduction in revenue and profitability for the year ending January 30 2021, as it becomes the latest retailer to warn of the effects of the pandemic.
Moss Bros said on Monday that it has been monitoring its high street stores, factory outlets, online and hire business segments for signs of any financial impact.
- Rebel shareholder questions Moss Bros takeover deal
- Crew Clothing owner to take Moss Bros private via acquisition deal
“Whilst the initial impact was relatively benign, over the last week we have seen a significant reduction in footfall across our retail outlets and in orders in our hire business,” Moss Bros said.
“As such, the group has taken the decision to temporarily close all its stores until further notice.
“The group recognises that Covid-19 could result in a sharper decline in trading performance if mass gatherings (such as Ascot) are voluntarily cancelled or prohibited.”
Despite the warning, the retailer said it was ”too early to determine the precise quantum” at this stage.
Moss Bros said it had been trading in line with expectations prior to March 13, and is currently debt free.
It added that it is taking precautionary measures to reduce costs and conserve cash in a bid to avoid a reduction in revenue.
Recenrtly, Waterstones, HMV and Kurt Geiger announced they were temporarily closing all their stores amid the coronavirus crisis.
Moreover, Retail Gazette revealed on Sunday that Edinburgh Woollen Mill Group had joined the growing list of retailers temporarily closing all UK stores in a effort to keep staff safe.