FTSE LIVE: Shares rocket after a big bounce-back in the US

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The menswear company blamed tough trading conditions and product shortages for a fall in sales and profits and warned of ‘extremely challenging’ times ahead. 

Moss Bros, which has already issued two profit warnings this year – one of which last week – posted a 6.1 per cent fall in pre-tax profits to £6.7million for the year to January 27.

Like-for-like retail sales were 6.7 per cent lower for the first eight weeks of the new financial year as product shortages continued.

Chief execuitve Brian Brick said: ‘Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.However, there is no question that we have hampered our own position through the stock shortages and as this gets back on track, our strong consumer proposition is restoring momentum. We will ensure that we continue to invest in this proposition to protect our position.’

Concerns over the health of high street retailers like Moss Bross come after Toys R Us and Maplin crashed into administration this year, while New Look is preparing to shut 60 stores.

In light of the poor results, Moss Bros slashed its full-year dividend by 32 per cent to 4p.

Shares initially fell by 3 per cent on the news to then trade 0.5 per cent lower at 46.50p.

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