Yahoo Finance Moss Bros braced for 'extremely challenging' future after profits slump
Menswear retailer Moss Bros has warned it is facing an “extremely challenging” future after posting a slump in profits for the past year.
Pre-tax income fell by 6.1% to £6.7 million, while sales slid 6.2% on the same period last year.
The full-year results come just days after the nationwide chain issued a profits warning for the year ahead, adding to the gloom around High Street shops.
MORE: Shares in Moss Bros slump after profit warning
Moss Bros’ chief executive Brian Brick said that after a strong first half, the final quarter was below expectations.
He said: “We suffered from a significant stock shortage, due to the poor implementation of the project to consolidate suppliers. We left ourselves with too little ‘running line’ stock to close out the year having bought cautiously for the second half of 2017.
“This has continued to hamper our performance into the start of the year.”
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He added: “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.”
A profit warning last week from the suit hire firm sent its share price tumbling by as much as 30% at one stage.
MORE: Almost 44,000 UK retailers ‘in real financial distress’, experts warn
Meanwhile, Swedish fashion giant H&M said profits fell 61% in the three months to the end of February to 1.26bn Swedish crowns (£108m).
The company, whose other outlets include fashion mid-market & Other Stories and Cos, warned last month of weaker demand in some stores.
H&M, which employs more than 170,000 people across 4,700 stores worldwide, said higher levels of stock would mean greater price cutting over the next three months.
