Moss Bros posts pre-Covid loss of £7.4m

Moss Bros trading update covid-19 pandemic lockdown
In December, the retailer's CVA proposal was approved
// Moss Bros reports loss before tax of £7.4m for the year to January 25, 2020
// Sales dropped 0.5% to £128.3m during the period
// Total like-for-like sales fell 1.2% despite online sales growing 6.5%

Moss Bros has witnessed a loss before tax of £7.4 million for the year to January 25, 2020 – equating to a 76.2 per cent drop compared to a £4.2 million profit last year.

The menswear retailer said sales dropped 0.5 per cent to £128.3 million during the period.

Overall total like-for-like sales fell 1.2 per cent despite its online sales growing 6.5 per cent.

READ MORE: Creditors green light Moss Bros CVA proposals

The retailer ended the period with online sales accounting for 16.9 per cent of the group’s total revenue, an increase of 2.4 per cent.

Like-for-like hire sales were down 16.3 per cent, which affected the retailer as this part of its business carries a higher gross margin rate.

Moss Bros reported an EBITDA of £5.5 million pre-IRFS during the period.

Its total gross margin was reduced by 0.1 per cent mainly because of a reduction in hire sales during the period.

In June 2020, Moss Bros was delisted from the London Stock Exchange.

In December, the retailer’s CVA proposal was approved, in a bid to secure rent reductions.

Moss Bros said more than 80 per cent of its creditors – including landlords – voted in favour of the proposal, surpassing the 75 per cent threshold required to pass the move.

However, no further details of the CVA have been provided as yet – including whether it would impact jobs.

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