Moss Bros posts first annual loss for eight years
Menswear retailer Moss Bros has blamed a series of problems including unseasonable weather and last summer's World Cup for its first annual loss in eight years.
The company, which has almost 130 UK stores, said the "volatile" trading environment around Brexit, stock shortages, discounting and a series of costs combined to force it into the red in the year to 26 January.
It reported a loss before tax of £4.2m compared to a profit of £6.7m in 2017/18.
Group like-for-like sales were 4.3% down at £140.2m - with its retail and hire businesses all contributing to the decline.
Online sales were almost 20% higher.
Moss Bros said: "Given the volatile trading environment, the board is not recommending a final dividend payment, to give the business maximum flexibility for investment, whilst retaining a strong debt free balance sheet.
"The total dividend for the year is 1.5 pence per share."
Shares fell 4%.
The company said its bottom line was hit by writedowns on the value of store assets and related provisions to the tune of £2.6m and "employee-related charges" of £1.2m.
It said it had not been immune from the cocktail of pressures facing the high street that has seen higher costs and weak football combine to force many chains to seek rescue deals to keep afloat.
It added that a number of contingency plans were in place to handle any Brexit scenario but it admitted they largely depended on "the preparedness of national authorities and other businesses".
The struggling company's outlook suggested it was encouraged by the reaction to its new ranges - with trading strengthening in the first eight weeks of its new financial year - but it expected business conditions to remain volatile.
Chief executive Brian Brick said: "Looking forward, in common with many UK retailers, we continue to anticipate an extremely challenging retail landscape, particularly within our physical stores, as a result of reduced footfall and rising costs.
"Alongside the macro trend of more retail transactions moving online, we expect the uncertain consumer environment and significant cost headwinds to continue."