Things are looking a little bit sharper at suiting and formal wear retailer Moss Bros (MOSB). Like-for-like retail sales rose 7.6 per cent last year - eclipsing the prior year's already impressive 7.1 per cent growth rate - while like-for-like hire sales mounted an impressive recovery, growing 11.7 per cent, compared with a 3.6 per cent decline in 2015. Much of that recovery, according to chief executive Brian Brick, has been down to the introduction of lounge and day suits to the brands hire range. Previously, only morning and formal suits were available, but Mr Brick explains there's been a shift to smart casual dress codes at most events, even weddings.
Another change in how Moss Bros serves customers is the advent of online shopping. Last year, e-commerce sales grew by more than a third and now represent 10 per cent of group sales. The amount of traffic attracted to the website, along with conversion and retention rates, are all improving, while mobile and tablet sales now comprise 37 per cent of total e-commerce sales. Local websites have also launched in Australia, the US and Republic of Ireland as Moss Bros tries to grow its international footprint. Moss Bros is also currently piloting two trial stores in the Middle East via a partnership with Retail Arabia. According to Mr Brick, Moss Bros has a strong reputation in the region, although the goal is to be considered "the first choice for men's tailoring".
Back home, three new store openings are planned for the current financial year, although the priority remains bringing the existing retail estate up to scratch. The made-to-measure service 'Tailor Me' has now re-launched in 25 stores, with 81 out of 124 retail sites trading under the new store concept. So far, like-for-like sales are up 5.2 per cent during the first nine weeks of the year.
Analysts at Peel Hunt upgraded 2017 pre-tax profit forecasts by 3 per cent to £6.8m, which equates to EPS of 5.3p, compared with £5.9m and 4.6p in the group's 2016 January year-end.
| MOSS BROS (MOSB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £101m | |
| TOUCH: | 100-103p | 12-MONTH HIGH: | 112p | LOW: 88p |
| DIVIDEND YIELD: | 5.6% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 37p | NET CASH: | £17.3m | |
| Year to 30 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 101 | 0.9 | 1.6 | 0.4 |
| 2013 | 105 | 3.1 | 2.5 | 0.9 |
| 2014 | 109 | 4.4 | 3.8 | 5.0 |
| 2015* | 115 | 4.8 | 3.6 | 5.3 |
| 2016 | 121 | 5.8 | 4.7 | 5.6 |
| % change | +6 | +21 | +29 | +6 |
Ex-div: 2 Jun Payment: 24 Jun *53-week period to 31 Jan | ||||
