The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Moss Bros Group on Tuesday reported its first annual adjusted loss before tax since 2011 and abandoned its final dividend payout as the British suit retailer grappled with weak demand and the costs of Britain's planned exit from the European Union.
The company has struggled through the year due to early season stock shortages in spring 2018 as well as lower footfalls and was forced to deeply discount its products in the second half of the year to attract customers.
Britain's retail sector, which has been under mounting strain for years, saw a string of store groups go out of business or announce shop closures in 2018.
Last week, fashion retailer Ted Baker posted its first drop in annual profit since 2008, highlighting tough conditions on Britain's high streets, while online retailer ASOS reported a dip in its second-quarter sales as growth slowed.
ADVERTISEMENT
"In common with many UK retailers, we continue to anticipate an extremely challenging retail landscape, particularly within our physical stores, as a result of reduced footfall and rising costs," Chief Executive Officer Brian Brick said in a statement.
Moss Bros on Tuesday also scrapped its final dividend payment and cut its total dividend for the year to 1.5 pence per share from 4 pence a year earlier.
However, the company said its total sales in the first eight weeks of the new financial year rose 3.6 percent and retail like-for-like sales, which includes e-commerce, gained 3.9 percent.
The company has been investing in its e-commerce business, as consumers continue to shop online for cheaper goods.
Moss Bros, which dates back to 1851, reported an adjusted loss before tax of £0.4 million compared to a profit before tax of £6.7 million last year.
Like-for-like sales fell 4.3 percent to £140.2 million.
By Abinaya Vijayaraghavan; editors: Patrick Graham and Arun Koyyur.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.