Wedding freeze hits Moss Bros

The retail business, however, reported a 1.7 per cent rise in revenue, leaving comparable group sales flat. Growth here was driven by a 164 per cent rise in online sales, offsetting declines in high-street sales, as revenue from Moss Bros's outlets fell by 2.7 per cent and high-street sales dipped 0.5 per cent. Management blames the weak store sales on the weather, with shops stocking the Spring collection when there was still snow on the ground, while the summer heatwave kept shoppers away in July. Meanwhile, direct sourcing helped the retail gross margin to rise 40 basis points, but this was offset by a 3.9 percentage point fall in the hire margin, due to a one-off item. Lower administration costs, though, meant the operating profit still rose 5 per cent to £2.1m.

There was good progress online. Following the launch of a new retail website in January, a transactional hire site is set to go live in November, which should revolutionise the business by boosting sales and increasing market share. Meanwhile, local language and currency websites in Australia, Sweden and Denmark are coming on stream before Christmas, with management eyeing the US market for next year. Four stores were refitted, with 10 refurbishments planned for the second half. So far, second-half trading has been positive, too, with like-for-like sales up 4.9 per cent.

Peel Hunt expects full-year pre-tax profit of £3.1m and EPS of 2.3p, up from £2.7m and 1.9p, rising to £3.9m and 2.9p next year.