Moss Bros, a renowned menswear retailer, has been navigating challenges brought on by the pandemic, but its e-commerce segment has been a shining beacon of growth. Despite reporting a significant pre-tax loss of £7.4 million for the year up to January, a stark contrast to the previous year’s profit of £4.2 million, the company has managed to boost its online sales by 6.5%, reaching almost 17% of total revenue.
The impact of the pandemic was evident in Moss Bros’ sales figures, with an overall decrease of 0.5% to £128.3 million, and a wider drop of 1.2% in like-for-like sales. The suit hire division experienced a significant decline in like-for-like sales of over 16%, which affected the overall financial results due to the higher margins in this segment. The company also reported an EBITDA loss of £5.5 million and an after-tax loss of £8.1 million, surpassing the previous year’s losses of £3.8 million.
In June, Moss Bros was delisted from the London Stock Exchange following a takeover process that was successfully completed amidst the challenges posed by the pandemic. To improve its balance sheet and restructure its store estate, the company entered into a company voluntary arrangement. The closure of physical stores due to lockdown restrictions had a substantial impact on sales, with only 50% of pre-Covid sales achieved by August post-reopening. Sales leading up to the second national lockdown in November were alarmingly low, leading to concerns about the company’s ability to return to pre-Covid levels in the foreseeable future.
Despite these obstacles, Moss Bros highlighted the growth of its online performance during the pandemic, including an increase in the average transaction value. The company’s strategic shift towards offering complete outfits rather than just suits has been well-received by consumers. However, the dependence on retail stores remains a crucial aspect of Moss Bros’ overall business model, limiting its growth potential until physical stores can fully reopen.
As Moss Bros continues to navigate the lasting effects of the pandemic, it is evident that the company is steadfast in its commitment to adapting to evolving consumer trends and market dynamics to secure its long-term success.
To learn more about Moss Bros and its latest updates, visit their official website here. For insights into the impact of the pandemic on the retail industry, check out this informative article here.
