Moss Bros Cheer As Sales Rise Bucks Trend

Menswear firm Moss Bros (LSE: MOSB.L - news) cut a dash with investors as it posted a 5% rise in like-for-like sales, bucking the gloomy trends elsewhere on the high street.

Shares (Berlin: DI6.BE - news) climbed 3% after the trading update for the 15 weeks from 31 January to 14 May though they ended the session flat as investors took profits.

It (Other OTC: ITGL - news) comes after rival Austin Reed collapsed into administration last month.

Meanwhile, Next (Other OTC: NXGPF - news) chief executive Lord Wolfson has warned that the retail sector was facing its toughest year since the financial crisis while luxury group Burberry this week reported a 10% plunge in profits.

Moss Bros, which operates 124 stores, saw like-for-like retail sales climb 5.1% while hire sales were up 4.7%. E-commerce sales were up 9.7% on last year.

Chief executive Brian Brick said the performance had been boosted by improvements to the company's stores – many of which have undergone refits – and website.

He said the strength of the business meant it had not needed to run mid-season price reductions – helping profit margins.

Mr Brick said: "This has been another good period of progress for Moss Bros and we remain confident about our growth prospects."

Andrew Hall, analyst at Verdict Retail, said: "This positive performance is indicative of the success of the new store re-fits and the traction gained by a more fashion forward product proposition.

"New (KOSDAQ: 160550.KQ - news) product ranges, emphasising a wider choice in lounge suits, are clearly matching the demand for more casual (yet stylish) looks from a more youthful consumer demographic, keen to mix-and-match pieces in their wardrobe."

Analysts at Peel Hunt said the sales improvement came despite a weak high street backdrop.

"Moss is now clearly demonstrating the brand's relevance to customers," they said.