Moss Bros Issue Warning Over Profits

Listed mens clothing retailer Moss Bros has today stunned the market by issuing a profit warning off the back of a slowdown in demand for their products over the last few months, suggesting a decline in profitability since forecasts were made.

The retailer announced today that it would be unlikely to reach profit forecasts as a result of a wider decline in sales, which are unlikely to pick up over the next few months to enough of an extent to offset the slowdown.

Total revenues for the period have fallen by just under 4%, over the last eighteen trading weeks, highlighting growing problems for its menswear retailing division and hire divisions generally. It is thought that the credit crunch environment along with rising interest rates have been responsible for the dearth in sales.

With the credit crunch tightening the purse strings of consumers, Moss Bros is the latest in a long line of high street retailers reporting sales slowing over the Christmas period as compared with previous years. And with Moss struggling to meet its current targets, it looks like the remainder of the Christmas period will be vital in determining its year end results.

Speaking today on the announcement, Moss said that year end profits would be unlikely to satisfy what was previously expected on the basis of the slowdown in sales figures experienced over the last two months.

It remains to be seen whether Moss will seize the opportunity of the next few weeks with a view to returning profitability, despite the warning to the contrary issues today.

Shares in Moss Bros were today down by 4% off the back of the news, suggesting it has had a negative effect on investor confidence and future revenue flow forecasts.

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