Moss Bros see sales slide

Moss Bros on Friday revealed total like-for-like sales fell 0.8 per cent for the first 16 weeks of 2007. Like for like retail sales for the first 16 weeks of the current year are level against the equivalent period last year whilst hire sales have remained difficult with the result that total like for like sales are down 0.8 per cent. This compares to like for like retail sales 0.9 per cent down and total sales down 1.4 per cent after the first 10 weeks of the current year.

In January of this year the company issued a profit warning. Commenting on the results, Phillip Mountford, the company's chief executive stated: “The menswear market remains highly competitive, and after five years of growth, the underlying revenue and operating profit figures reflect a difficult year. A number of the steps have been taken during the year to strengthen the business, which also negatively affected performance in the period, although they will be positive in the longer term.”

www.mossbros.com
30 May 2007

Moss Bros profits in critical state

Menswear retailer Moss Bros has warned that its annual profits are set to fall after an "unusually difficult" 2006. It said that a fall-off of trading in the second half of the year meant like-for-like sales were 1.4% down in the 49 weeks to 6 January. The sales performance meant trading profit would be "materially lower", Moss Bros said. In August last year, the retailer said that unseasonable weather and the World Cup had hit sales.

In its trading update Moss Bros - which also operates the Cecil Gee and Hugo Boss brands - said it remained confident for the future of the business. There has been speculation that Baugur is keen on buying the firm. The Icelandic investment group owns a string of UK High Street names including House of Fraser, Hamleys and Karen Millen.

www.mossbros.com
10 January 2007

Moss Bros in takeover bid

Baugur is in talks with menswear group Moss Bros in a bid to take over the company in which it holds a sizeable stake. Baugur already owns close to 30 per cent of the company through Unity, the £1 billion investment vehicle it formed with Icelandic investment group FL Group and British retail entrepreneur Kevin Stanford.

Stanford is playing a pivotal role in negotiating the deal by transferring his 28.2 per cent stake in Moss Bros to Unity to strengthen Baugur's bargaining position. Gunnar Sigurdsson head of Baugur's UK division has held a series of meetings over the past weeks with the Moss Bros board, led by chairman Keith Hamill. While Hamill is understood to be prepared to recommend an offer of close to £80 million Baugur believes that values the company which has a stock market value of £69 million.

www.mossbros.co.uk
30 October 2006

Moss Bros chief takes charge

Philip Mountford, chief executive of menswear retailer Moss Bros, has announced he will take charge of the chain that has seen pre-tax profit for the first half drop 52 percent. Turnover for the first half reached £63.3 million, up from £62.4 million the year before, while like for like sales dropped 0.72 percent. The second half did not show any improvement in trading. “Trading in the first 10 weeks of the second half has not shown the growth in revenues we anticipated,” said Mountford, admitting that “the performance of Moss has not been satisfactory”. He attributed the disappointing sales results to “a significant increase in property and utility costs, which disproportionately affect the first half, which has lower sales than the second half.” According to Diana Whitehead, the group's PR manager, the company does not anticipate that these costs will be duplicated in the second half. The company also admitted that the sales of casual wear had dipped and has appointed a new senior buyer of casual wear, who assumed her position in September. Furthermore, Whitehead revealed the group has also committed to extensive customer research to address any other areas for improvement.

Mountford said he will be personally responsible for the day-to-day running of the group's stores. He admitted he has “taken direct responsibility for its operations, merchandising and buying activities until Moss is back on plan.” Last week, the group announced the sudden departure of trading director David Pidgeon. Mountford will be responsible for day-to-day trading operations of the group's 118 stores for an indefinite period of time. According to Whitehead, there is no time scale in place.

As a further part of the effort to get back on track, the company has appointed Michael Hitchcock as its new financial director. In further news, the company opened nine new Moss stores in the first half. It also opened two new Hugo Boss stores in Sheffield and Manchester .

www.mossbros.co.uk
16 October 2006

Moss Bros set for expansion

Clothing retailer Moss Bros has said it is planning to rapidly expand its store numbers over the next five years. Its mainstream business, which includes its core Moss Bros chain and formal wear hire service, could grow to 200 stores from its current 118 outlets. The news came as the firm unveiled an 8.8% rise in pre-tax profit to £6.2m for the year to 28 January.

Moss Bros stores saw like-for-like sales growth of 4.7%, compared with a 2.5% rise for the group as a whole. Moss Bros also operates the Cecil Gee and Hugo Boss brands. The company said it had highlighted 80 towns and cities in the UK where it could trade profitability.

16 April 2006

Moss Bros maintains positive outlook

British menswear group Moss Bros recorded a boost in sales last year thanks to the performance of its website and the launch of its own-label fashion store. Although like-for-like sales growth continued to slow down, the company maintains a positive outlook for the year ended 28 January. Like-for-like sales rose 2.5 percent in 2005 compared with 9 percent a year ago. During the fourth quarter, like-for-like sales climbed 4 percent, as opposed to 7 percent during the same quarter the year before.

Despite the slowdown, the group insists that its full-year results will be in line with market expectations. “We expect to see positive results over the next 12 months, while continuing to improve gross profit through further sourcing opportunities and controlling costs,” said chief executive Philip Mountford. “We have focused on outsourcing more to countries such as China , India and south-east Asia to help to cut costs.” According to the FT, analysts are worried about the effect of rising costs on the group, such as rent increases and a rise in the group's utility bill. Some have cut their profit forecast for the company. Meanwhile, the group's finance director Roddy Murray has resigned effective immediately. He will continue in an advisory capacity until the end of year and will help with the handover once his successor has been found.

www.mossbros.co.uk
10 February 2006

Former Moss Bros CEO eyes acquisition?

Adrian Wright, the former chief executive of men's wear chain Moss Bros, is rumoured to have shown renewed interest in the men's wear retailer SRG, according to media reports. It is thought that Wright might get the retailer for a better price if he were to bid for it this time round, in light of poor high-street trading. Wright first contemplated the purchase of SRG earlier this year. SRG owns the Racing Green and Suits You chains.

24 October 2005

Moss Bros brings good cheer

Moss Bros provided a positive note amidst the doom and gloom of the current retailing climate with a 3 percent rise in interim underlying sales. It reported a climb of 4 percent in gross profit, while stating that it would fulfil expectations for the year. Although the company admitted that the second half had shown a slowdown, it said its progress was encouraging.

Chief executive Philip Mountford said the group would make up for the slowdown and meet expectations for the year. He added that more customers were attracted to the core Moss chain and that there was strong demand for branded lines and lower cost £199 suits. Mountfort also believed that the company would continue to win market share while other retailers suffered. “I think we are also taking a bit from Austing Reed,” he said.

Analysts remained cautious, either adjusting their forecasts downwards or leaving them unchanged.

www.mossbros.co.uk
13 October 2005

Moss Bros appoints adviser

British retailer Moss Bros has appointed Kevin Stanford as adviser on branding issues and business opportunities. Stanford, co-founder of high street womenswear retailer Karen Millen, will receive a 28 percent stake in the company but will not take place on the board.

Following his purchase of Shami Ahmed's stake in Moss Bros, chief executive Philip Mountford said he was keen to meet him. “When we finally gave a presentation he had so many ideas it seemed a good plan to give him a role,” said Mountford. Stanford has extensive knowledge of the retail sector and has interests in retail groups All Saint and Mosaic as well as a 0.5 percent stake in Marks & Spencer, which he aquired at the beginning of July.

Moss Bros also announced a 3 percent rise in like-for-like sales compared to last, bucking the high street trend of poor sales following the terrorist attacks. Mountford also announced that sales in the City and on Oxford Street were back to normal, although Bond Street and Regent Street remained stagnant. The company anticipates pre-tax interim profits of over £1.4 million, doubl last year's £0.7 million.

www.mossbros.co.uk
4 August 2005

Profits for Moss Bros

UK retailer Moss Bros have reported pre-tax profits for the year to January 29 increased more than fivefold to £5.5 million as young management team plumped up gross margins and increased sales. The retailer has increased gross profit margins 2 percentage points to 52.2 per cent while underlying sales rose 9 per cent for the year.

Philip Mountford, chief executive, said that higher sales were a result of planned promotions and an increased range of merchandise in the stores. The retailer is planning to sell its own range of high-quality smart men's shirts and has also introduced more casual clothing.

14 April 2005

Moss Bros Meet Market Expectations

Menswear retailer Moss Bros continued to reap the rewards of a turnaround strategy today as it revealed like-for-like sales rose 7% over the Christmas period. The group said its Moss, Cecil Gee and Hugo Boss brands all delivered good sales growth and that it expected annual profits to be in line with market expectations.

In an update ahead of results for the year to January 29, the London-based group said same-store sales over the 12 months were 9% higher than last year. The 7% lift in sales for the nine weeks to January 29 make Moss one of the few retailers to perform well during the worst Christmas on the UK high street for more than 20 years. Moss reported half-year profits for the first time in five years in October after putting in place a strategy to improve product ranges and tackle supply chain problems.

On Friday it said it had continued to benefit from better products and improved service levels in its stores. During the second half of its financial year, like-for-like sales were 10% higher, including a 9% lift at Moss Bros, 10% at Cecil Gee and 15% at Hugo Boss.

Chief executive Philip Mountford said profit margins continued to reflect improvements such as better buying terms and more effective sales promotions. He added: "There remains unrealised potential in existing stores and we are focused on further developing the company." As well as 100 Moss outlets, the group has 28 Cecil Gee stores and 11 Hugo Boss sites. Moss is due to report results on April 12. Shares rose nearly 2% today, up 2.5p to 128.5p.

4 february 2005

Moss Bros Strong Start To Year

Moss Bros has seen a strong start in the first six months of its financial year, reporting a first half profit for the six months to July 31. The formal menswear retailer said profits for the half would be not less than GBP 0.5m,compared to a first half loss of GBP 1.8m a year ago. Like-for-like sales for the 26 weeks are 8 per cent up on last year, with suit sales, the core of the business, up 14 per cent on last year. Moss Bros said gross margin for the half is up 10 per cent on a like-for-like basis, with gross margin percentage of more than 51.5 per cent compared to 50 per cent last year.

Chief executive Philip Mountford said: "The company is back in profit in the first half for the first time in five years. Like-for-like sales growth of 8 per cent is encouraging, with all three core fascia - Moss, Cecil Gee and Boss - showing sales growth. "Suit sales have been particularly strong, up 14 per cent, with continued success for our strategy of selling quality branded suits at good prices. Gross margin percentage continues to strengthen reflecting improvements made in product ranges, improved buying, supply chain efficiencies and more effective sales promotions.

"We have made a good start but there remains considerable work to do to realise the full potential of the business." Moss Bros has been at the centre of takeover speculation for some time, with the focus recently shifting from jeans entrepreneur Shami Ahmed to Karen Millen co-founder Kevin Stanford.

4 August 2004

Austin Reed And Moss Bros On Brink Of Takeover

Well-known brands Austin Reed and Moss Bros are believed to be on the brink of being put into takeover play with key shareholdings in the companies set to change hands. It is understood Kevin Stanford, co-founder of the Karen Millen clothing chain, is poised to buy the 22.6 per cent stake in Moss Bros held by the clothing entrepreneur Shami Ahmed.

Stanford already has 5.6 per cent of Moss Bros, so taking Ahmed's holding will take him up to 28.2 per cent - just short of the 30 per cent at which City Takeover Panel rules require him to make a bid for all the outstanding shares. Meanwhile, it is understood Greenwoods, the privately-owned menswear business, is set to make a takeover bid of GBP50 million for Austin Reed, the troubled menswear chain.

Both Greenwoods and Austin Reed have big formal hire wear businesses, and the plan is for Reed to be taken private and merged with Greenwoods. Reed's struggling womenswear chain, Country Casuals, would then be sold off, to allow the group to focus on more formal wear.

Austin Reed is seen as particularly vulnerable at present following a profit warning last week - its second since last November. Reed told the City it would move into the red to the tune of about GBP3m for the six months to mid-August compared with a GBP1.1m profit in the same period last year.

The blame was laid largely at the door of Country Casuals, where first-quarter sales fell 10 per cent and led to the firing of David Lowbridge, the head of the womenswear chain. Earlier this year Reed's chief executive, Roger Jennings, was ousted to be replaced by the former Arcadia director, Nick Hollingworth.

>> more Austin Reed news on FashionUnited
27 July 2004

Moss Bross Reports First Profits In 4 Years

Moss Bross , the group which operates Hugo Boss, Cecil Gee and Moss stores is back in business, reporting profit for the first time in four years. Strategising on three core retail brands, pre-tax profits were GBP1m, compared to a loss last year of GBP2.5m. Market share for the group was increased with UK suit sales up 8 per cent from 7.6 per cent last year and Moss like-for-like suit sales grew by 5 per cent.

Currently labour has commenced on a new concept for Cecil Gee stores, key in its development programme to boost the Cecil Gee brand. The company had a strong end to the year, trading well over the crucial sales period of December and January and the impetus has increased with the new financial year.

With an improved product lineup and the refit of Moss stores, the group is maximising on the potential to significantly increase sales and thusfar the new financial year has started out confidently with signs of growth.

2 April 2004

Moss Sets GBP1m Profit Target and Plans Stores

Moss Bros group trading director Philips Mountford has revealed the company has set two short term targets: to make GBP1million profit for the financial year to January 04 and add around 20 Moss stores over the next three years. Moss has said in the past that it will move back into profit this year and, speaking at the Drapers Fashion Summit, Mountford told delegates it was on course to succeed to the tune of a "million pounds." Moss has 105 stores and could grow by as much as 20 per cent, after several years without any new openings. Five more Hugo Boss franchise stores are planned over the next three years.

12 November 2003

Moss Bros Reveals Blazer Comeback

Moss Bros is to reveal its new Blazer collection this week. Best described as a men's smart casual range, it is revived after three years and being launched in 11 Moss stores across the UK.

Aimed at the 30-something professional, it's not for the M&S lads according to Group trading director Philip Mountford. "It's for men who already have suits for the office, and combats and T-shirts for Saturdays, but are still looking for things to wear on smarter occasions during the weekend."

Among the stores to get the range today are Oxford Street and Covent Garden in London, Bath Guildford, Edinburgh and Richmond in Surrey. A further 18 stores will be carrying the collection by February 04 and in 24 by next autumn.

Moss Bros is further close to signing a branding agency responsible for revamping the Cecil Gee brand identity. The first new concept stores is planned to open in mid-February.

23 September 2003

Small Investors Key to Moss Bros Future

Individual shareholders and long-term customers could control the future of Moss Bros as entrepreneurs Kevin Standford and Shami Ahmed circle the business.

The group, described by one shareholder as 'small loyalists' and comprising ex-employees and long-term associates, are understood to own up to 25 per cent of the business and are likely to be crucial in determining its future.

The Moss and Gee families own about 38 per cent of the business, and a bid that did not carry a sizeable chunk of these shares would require almost unilateral support from other shareholders. Latest figures reports that 58 per cent of the business was in the hands of major shareholders, with the remainder held in small, fragmented groups.

A takeover is back on the agenda after Joe Bloggs founder Shami Ahmed last week increased his stake to 10.28 per cent, taking him above the level where he could call an EGM or block other bids.

However, Moss Bros has called for clarification on Ahmed's latest acquisition, which claims came without the necessary disclosure of financial information.

Karen Millen owner Kevin Stanford, who owns a 9.1 per cent stake in the company, has also requested a meeting with Moss Bros management, though his agenda is not known. The timing of the renewed interest is surprising as moss Bros recently paid its first dividend for several years.

20 May 2003

Moss Bros recovers

After a difficult few years the recovery of menswear retailer Moss Bros finally seems to be back on track after the company announced that its full-year losses had diminished considerably. For the first time since 2000 the fashion firm, which also owns Hugo Boss and Cecil Gee, has made a profit of GBP 1.2 million in the second half of its financial year.

The firm's turnaround saw underlying sales rise by 9 per cent in the first three months of the year. For the year to January 25, Moss Bros delivered a £2.5 million pre-tax loss, against a £4.9 million loss the previous year. Operating losses were also reduced from £7 million to £2.5 million while gross profit margins rose 2.5 per cent to 46.3 per cent. The firm is also celebrating with a final dividend of 0.75p, the first in nearly three years.

Speaking about the success, Adrian Wright, the firms' chief executive, said: "I'm pleased with the progress we're making. Obviously there is a lot more work to do but I am encouraged by our like-for-like sales growth. The dividend recommendation underlines our confidence in the business."
<Fashion Capital>

April 17, 2003