Menswear retailer Moss Bros today warned its new financial year had got off to a bad start with weak trading expected to force its profits to slump in the first half.
Chairman Neil Benson told investors at the companys AGM that like-for-like sales, excluding those from nine new stores, were down 4.5% in the first 16 weeks since its year began on February 1.
However, the trend had improved slightly in recent weeks with like-for-like sales down 2.9% in May compared to the same period last year.
Total sales for the 16-week period were ahead of the previous year by 4%.
The profit warning, Moss Bross second in 1999, saw shares in the company fall 5%, or 9p, to 185.5p.
In January, he warned tough price competition during the Christmas period was expected to push the groups profits down for the year to January 31.
Seven weeks ago, it unveiled annual results showing pre-tax profits of £16.1m against £19.6m for the previous 53 weeks.
Benson said Moss Bros, which is one of the oldest names in the business of selling and hiring suits, would push ahead with plans to open another five shops this year.
The Moss Bros empire of nearly 200 stores includes high street chains such as Blazer, The Suit Company, Savoy Taylors Guild and Hugo Boss.
EGi News 28/05/99
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