Moss Bros warns over earnings as sales slump

Moss Bros has cautioned over profits after sales at the mens retailer suffered a triple whammy of stock shortages, weak footfall and sluggish suit hire demand.

Earnings are now set to be “materially lower” than market hopes for the full year to 26 January 2019, the group yesterday warned.

The firm moved to cut its full-year dividend by about a third to ensure it could make future payments to shareholders. It marks the second profit alert issued by Moss Bros since the start of the year.

Chief executive Brian Brick said the group was taking action early to protect the “underlying strength” of the business, as it faces up to a “very challenging” year ahead.

“The beginning of the year has been hampered by short-term stock delivery issues caused by the consolidation of our supplier base,” he told investors.

“The resulting stock shortage has undoubtedly driven a significant shortfall in sales, which will continue until late spring.”

Moss Bros has almost 130 stores across the UK.