MENSWEAR chain Moss Bros reported a sharp drop in sales yesterday and warned tough trading conditions would leave full-year profits short of expectations.
Moss Bros said like-for-like sales were down 5.2 per cent for the past 18 weeks, following a 2.6 per cent fall in the first half of its financial year.
Shares in the company fell by 12 per cent yesterday as it said the challenging conditions
in the retail sector were likely to have a "material adverse impact" on its full-year profits.
But Moss Bros stressed the bulk of the crucial Christmas trading period was still to come.
The news comes days after retail tycoon Sir Philip Green offloaded his 28 per cent stake in the business, having earlier ruled out a takeover bid. The Topshop and Burton billionaire, who snapped up the stake last month, made a profit of £1.05 million before dealing fees when it was sold last week to Simon Berwin, head of Leeds-based suitmaker Berwin & Berwin.
Chief executive Philip Mountford said the retailer would now focus on reducing costs.
He said: "Our sales performance in the last two months reflects the very tough trading conditions in our markets. The business is ever vigilant to opportunities to reduce costs and maximise cash flow and proactively take steps to drive sales in what we expect to continue to be a challenging retail market."
Moss Bros, which was founded in 1851, made a pre-tax loss of £1.6m in the six months to 26 July.
The full article contains 262 words and appears in The Scotsman newspaper.
