With fewer couples tying the knot this year, suit specialist Moss Bros (MOSB) experienced a slowdown in its hire business, which derives two-thirds of its income from weddings, despite good growth from the eveningwear and Ascot ranges. This caused like-for-like sales from the hire business, which accounts for 17 per cent of turnover, to slump 7.2 per cent in the first six months of the year.
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.